Report on G20 Trade Measures

29 June 2020

REPORT ON G20 TRADE MEASURES

(MID-OCTOBER 2019 TO MID-MAY 2020)

TABLE OF CONTENTS KEY FINDINGS ...... 2 EXECUTIVE SUMMARY ...... 7 1 INTRODUCTION ...... 11 2 RECENT ECONOMIC AND TRADE DEVELOPMENTS ...... 13 2.1 Overview ...... 13

2.2 Economic Developments ...... 14

2.3 Merchandise Trade...... 15 2.4 Trade in Commercial Services ...... 21 2.5 Trade Forecast and Economic Outlook ...... 21 3 TRADE AND TRADE-RELATED POLICY DEVELOPMENTS ...... 25 3.1 Overview of trends identified during the review period ...... 25 3.1.2 COVID-19 Trade and trade-related measures ...... 31 3.2 Trade Remedies ...... 37 3.3 Sanitary and Phytosanitary (SPS) Measures ...... 48 3.4 Technical Barriers to Trade (TBT) ...... 53 3.5 Trade Concerns Raised in Other WTO Bodies ...... 59 3.6 Policy Developments in Agriculture ...... 63 3.7 General Economic Support ...... 72 3.8 Other Selected Trade Policy Issues ...... 76 4 POLICY DEVELOPMENTS IN TRADE IN SERVICES ...... 87 5 POLICY DEVELOPMENTS IN TRADE AND INTELLECTUAL PROPERTY ...... 100 ANNEX 1 - MEASURES FACILITATING TRADE ...... 105 ANNEX 2 - TRADE REMEDIES ...... 110 ANNEX 3 - OTHER TRADE-RELATED MEASURES ...... 120 ANNEX 4 - MEASURES AFFECTING TRADE IN SERVICES ...... 128 ANNEX 5 - COVID-19 TRADE AND TRADE-RELATED MEASURES (GOODS) ...... 147 ANNEX 6 – COVID-19 TRADE AND TRADE-RELATED MEASURES (SERVICES) ...... 163

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KEY FINDINGS

• This Report covers new trade and trade-related measures implemented by G20 economies between 16 October 2019 and 15 May 2020. This period included the start of the COVID-19 pandemic, which has already delivered an almost unprecedented shock to the global economy and caused significant social disruption. Although the full impact of the pandemic is not yet reflected fully in trade statistics, it is expected to be very substantial.

• In its trade forecast of 8 April, the WTO considered two scenarios for the crisis, one relatively optimistic and the other more pessimistic. Under the optimistic scenario, the volume of world merchandise trade would fall by 12.9% and world GDP would decline by 2.5%. Under the pessimistic scenario, trade would contract by 31.9% and GDP would shrink by 8.8%. As of mid-June, preliminary trade data and trade-related indicators for the first half of 2020 are more consistent with the optimistic scenario than the pessimistic one, but actual outcomes could easily fall within or even outside of the forecast range, depending on how the crisis unfolds.

• World trade was already slowing before the pandemic struck, weighed down by heightened trade tensions and slowing global economic growth. Merchandise trade was down 0.1% in volume terms in 2019, marking the first decline since 2009. Trade growth also slowed in nominal terms in 2019, as the dollar value of merchandise exports fell by 3% to USD 18.89 trillion. Although commercial services exports increased by 2% to USD 6.03 trillion in 2019, the pace of growth was down sharply from 9% in the previous year.

• Overall, G20 economies implemented 154 new trade and trade related measures during the review period of which 95 were of a trade-facilitating nature and 59 were trade-restrictive. Sixty percent of these measures (93 in total) were linked to the COVID-19 pandemic. Of these 93 measures, 65 facilitated trade while 28 restricted trade. In the early stages of the pandemic, several of the measures introduced by G20 economies restricted the free flow of trade, principally for exports. But as of mid-May 2020, 70% of all COVID-19 related measures were trade-facilitating. Of the pandemic related trade restrictions recorded, export bans accounted for more than 90%. Around 36% of the COVID-19 specific trade restrictions implemented by G20 economies had been repealed by mid-May.

• Excluding COVID-19-related measures, G20 economies implemented 61 trade and trade- related measures during the review period. These included 30 new measures aimed at facilitating trade during the review period. The trade coverage of these non-COVID-19 related import-facilitating measures implemented during the review period was estimated at USD 735.9 billion, the highest figure for such measures since November 2014. G20 economies also put in place 31 new trade-restrictive measures unrelated to the pandemic. The trade coverage for these new import-restrictive measures was estimated at USD 417.5 billion - the third highest value recorded since May 2012. The trade coverage of import-restrictive measures has soared since May 2018 as a result of global trade tensions. It is estimated that 2.8% of G20 trade was affected by import restrictive measures implemented during the current review period. Import-restrictive measures implemented since 2009 and still in force affect an estimated 10.3% of G20 imports (USD 1.6 trillion).

• All WTO issues regularly covered by this Report saw significant activity both before and after the outbreak of the COVID-19 pandemic. During the review period, 203 trade remedy actions were recorded for G20 economies. The monthly average of trade remedy actions initiated was slightly higher than the average for the last eight years while the monthly average of trade remedy terminations was the lowest over the same time span. During the review period, initiations of anti-dumping investigations accounted for around 80% of all trade remedy initiations, which also includes safeguards and countervailing actions.

• In services, most of the new measures introduced by G20 economies between mid-October 2019 and mid-May 2020 were trade facilitating, but a number of new policies appeared to be trade restrictive, including in areas related to foreign investment and in areas considered strategic or linked to national security. Most of the 51 services measures adopted by G20 economies in response to the pandemic appeared to be trade-facilitating.

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• G20 economies continued to implement general economic support measures as part of their overall trade policy, a fact confirmed by Secretariat analysis despite governments' low response rate with respect to these measures. In addition, G20 economies also implemented a large number of emergency support measures in response to the economic and social turmoil caused by the COVID-19 pandemic. Most of the 468 COVID-19 related general economic support measures identified, including monetary, fiscal and financial measures as well as preferential loans, credit guarantees, and stimulus packages, collectively worth several trillion US dollars, appeared to be temporary in nature. These emergency support measures are central to governments’ strategies to address the pandemic-induced economic downturn and to prepare the ground for a strong recovery. Regular monitoring of support measures introduced in the context of the COVID-19 pandemic will be important for Members to be able to track their evolution and effects as the world exits the health crisis and enters a recovery period.

• G20 economies continued to be very active in notifying their SPS measures, accounting for 66% of all regular notifications and 35% of emergency notifications since 1995. From 1 February until 15 May 2020, ten G20 economies submitted 15 SPS notifications and communications related to measures taken in response to the pandemic. The nature of most of these measures has shifted, from initial restrictions on animal imports and/or transit from affected areas and additional certification requirements, to, as of April, trade-facilitating measures such as the use of electronic certificates for checks. Similarly, G20 economies are the most frequent users of the TBT Committee's transparency mechanisms. As of 15 May 2020, G20 economies had submitted 20 COVID-19 related TBT notifications, covering a wide range of products including personal protective equipment (PPE), medical equipment, medical supplies, medicines and food.

• Most questions raised in the Committee on Agriculture during the review period focused on policies implemented by G20 economies. In relation to the COVID-19 pandemic, three WTO Members informed the WTO of temporary measures to respond to food security threats.

• The Report also covers developments in G20 economies in Trade-Related Aspects of Intellectual Property Rights (TRIPS). Several G20 members implemented specific IP-related measures aimed at facilitating the development and dissemination of COVID-19 related health technologies, as well as at relaxing procedural requirements and extending deadlines for administrative IP matters.

• Work continued in the first months of 2020 to advance negotiations, particularly on fisheries subsidies building on the decision taken by Members at MC11. Groups of Members also continued to pursue discussions on other issues, including electronic commerce, investment facilitation, women's economic empowerment, domestic regulation in services and, micro, small and medium-sized enterprises (MSMEs). However, delegations' ability to engage in detailed negotiations has been constrained by restrictions on movement and the refocusing of priorities on addressing the COVID-19 pandemic.

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G20 trade-facilitating and trade-restrictive measures, mid-October 2019 to mid-May 2020 (By number)

Note: Including COVID-19 trade and trade-related measures.

Source: WTO Secretariat.

G20 COVID-19 trade and trade-related measures, by mid-May 2020 (By number)

Source: WTO Secretariat.

G20 trade and trade-related measures, mid-October 2019 to mid-May 2020 (By number) 264

148 55 30 31

Trade remedy initiations Trade remedy terminations

Measures facilitating trade Trade-restrictive measures

Note: COVID-19 trade and trade-related measures are not included.

Source: WTO Secretariat.

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Trade coverage of G20 measures, mid-October 2019 to mid-May 2020 (USD billion)

Note: COVID-19 trade and trade-related measures are not included.

Source: WTO Secretariat.

Trade coverage of new import-facilitating measures in each reporting period (not cumulative)

(USD billion)

800 736

700

600

500

397 400 362

300 216 200 163

87 100 132 65 33 27 83 93 0

Note: These figures are estimates and represent the trade coverage of the measures (i.e. annual imports of the products concerned from economies affected by the measures) and not the cumulative impact of the trade measures. Liberalization associated with the 2015 Expansion of the WTO's Information Technology Agreement is not included in the figures. COVID-19 trade and trade-related measures are not included. Source: WTO Secretariat.

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Trade coverage of new import-restrictive measures in each reporting period (not cumulative) (USD billion) 500 481 460

418

400

336 300

200

139 120 104 100 75 68 55 47 25 74 14 39 34 32 0

Note: These figures are estimates and represent the trade coverage of the measures (i.e. annual imports of the products concerned from economies affected by the measures) introduced during each reporting period, and not the cumulative impact of the trade measures. COVID-19 trade and trade- related measures are not included. Source: WTO Secretariat.

Cumulative trade coverage of G20 import-restrictive measures in force since 2009

(USD billion and % of world merchandise imports) () 1,600 12

10.3 1,400 10 8 .8 1,200

8 1,000

800 5 .3 1,568 6

1,328 4 .2 600 4 .0 4 2 .9 400 2 .6 724 1 .5 1 .6 501 507 2 200 1 .0 419 0 .7 369 215 226 115 68 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Import restrictions in force (left axis) % of G20 imports (right axis)

Note: The cumulative trade coverage estimated by the Secretariat is based on information available in the Trade Monitoring Database (TMDB) on import measures recorded since 2009 and considered to have a trade-restrictive effect. The estimates include import measures for which HS codes were available. The figures do not include trade remedy measures. COVID-19 trade and trade-related measures are not included. The import values were sourced from the UNSD Comtrade database. Source: WTO Secretariat.

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EXECUTIVE SUMMARY

This is the twenty-third WTO Trade Monitoring Report on G20 trade measures.1 It covers new trade and trade-related measures implemented by G20 economies between 16 October 2019 and 15 May 2020.2 These Reports have been prepared, together with the OECD and UNCTAD, in response to the request by G20 leaders to monitor and report on trade and investment measures implemented by G20 economies. The previous Report was issued on 21 November 2019.

This Report was prepared against the backdrop of the COVID-19 pandemic, which has delivered an unprecedented shock to the global economy and caused exceptional social disruption around the world.3 The full impact of the pandemic is not yet reflected in trade statistics but is expected to be very substantial. In its trade forecast of 8 April, the WTO considered two scenarios for the crisis, one relatively optimistic and the other more pessimistic. Under the optimistic scenario, the volume of world merchandise trade would fall by 12.9% and world GDP would decline by 2.5%. Under the pessimistic scenario, trade would contract by 31.9% and GDP would shrink by 8.8%. Trade is expected to rebound in 2021 under both scenarios, but only the optimistic one would see trade return to its pre-pandemic trend. The forecast only covers merchandise trade, but commercial services trade is also expected to be severely hit as a result of comprehensive travel restrictions and social distancing measures. Preliminary trade data and trade-related indicators for the first half of 2020 are thus far more consistent with the optimistic scenario than the pessimistic one, but actual outcomes could easily fall within or even outside of the forecast range, depending on how the crisis unfolds.

World trade was already slowing before the virus struck, weighed down by heightened trade tensions and slowing global economic growth. Merchandise trade was down 0.1% in volume terms in 2019, marking the first decline since 2009. Trade growth also slowed in nominal terms in 2019, as the dollar value of merchandise exports fell by 3% to USD 18.89 trillion. Although commercial services exports increased by 2% to USD 6.03 trillion in 2019, the pace of growth was down sharply from 9% in the previous year.

This Report shows that by mid-May 2020, G20 economies had implemented 93 trade and trade- related measures explicitly linked to the COVID-19 pandemic. The implementation of these measures appeared to have come in two clearly identifiable waves. In the early stages of the pandemic, several of the measures introduced by G20 economies restricted the free flow of trade, principally for exports. However, as of mid-May 2020 65 (70%) of all measures were of a trade- facilitating nature, and 28 measures (30%) could be considered to have a trade-restrictive effect. Export bans accounted for more than 90% of all trade restrictions recorded. In early May, some Members had begun to phase out export constraints targeting products such as surgical masks, gloves, medicine, and disinfectant. There is further evidence that a roll back of other trade and trade related measures taken in the early stages of the pandemic is also taking place. For instance, around 36% of the COVID-19 specific restrictive measures implemented by G20 economies had been repealed by mid-May.

G20 economies implemented 30 new measures aimed at facilitating trade during the review period, mainly through elimination or reduction of import tariffs, elimination of import taxes and reduction of export duties. The trade coverage of the non COVID-19 related import-facilitating measures implemented during the review period was estimated at USD 735.9 billion, which is significantly higher than that recorded in the last Report (USD 92.6 billion). This is the highest trade coverage of import-facilitating measures recorded since November 2014.

The Report also shows that during the review period G20 economies implemented 31 new trade- restrictive measures unrelated to the pandemic mainly through tariff increases, import bans, stricter customs procedures and export duties. The trade coverage for the new non COVID-19

1 The WTO Trade Monitoring Reports have been prepared by the WTO Secretariat since 2009. G20 members are: Argentina; Australia; Brazil; Canada; China; European Union; France; Germany; India; Indonesia; Italy; Japan; Korea, Republic of; Mexico; the Russian Federation; Saudi Arabia, Kingdom of; South Africa; Turkey; the United Kingdom and the United States. 2 Unless otherwise indicated in the relevant Section. 3 A dedicated webpage on the WTO website (https://www.wto.org/english/tratop_e/covid19_e/covid19_e.htm) provides detailed information on COVID-19 trade and trade-related measures and is updated regularly.

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related import-restrictive measures was estimated at USD 417.5 billion. This represents the third highest value recorded since May 2012. The trade coverage of import-restrictive measures has soared since May 2018 as a result of global trade tensions. It is estimated that 2.8% of G20 trade was affected by import restrictive measures implemented during the current review period.

WTO Secretariat estimates of the stockpile of import restrictions implemented since 2009, and still in force, suggest that 10.3% of G20 imports are affected by these restrictions. At the end of 2019, USD 1.6 trillion out of a total USD 15.3 trillion of G20 imports were estimated to be affected by import restrictions put in place by G20 economies over the last decade. The stockpile of import restrictions by G20 economies in force has grown steadily since 2009 – in value terms and as a percentage of imports.

During the review period, 203 trade remedy actions were recorded for G20 economies. The monthly average of trade remedy actions initiated by G20 economies was slightly higher than the average for the last eight years while the monthly average of trade remedy terminations was the lowest over the same time span. During the review period, initiations of anti-dumping investigations continued to be the most frequent trade remedy action, accounting for around 80% of all trade remedy initiations, including safeguards and countervailing actions. The trade coverage of trade remedy initiations recorded in this Report was estimated at USD 24.5 billion (higher than the USD 16.7 billion recorded in the last Report) and that of terminations at USD 1.9 billion (lower than the USD 3.8 billion recorded in the last Report). As of 15 May 2020, only two G20 members had notified anti-dumping actions referring to the COVID-19 pandemic.

With respect to general economic support measures, the Secretariat received information from only two G20 economies in response to the Director-General's request for information. As a result, the Secretariat has unfortunately again been unable to justify the inclusion of a separate Annex on these measures in the Report. From the limited information received, and from the research undertaken by the Secretariat, the current review period confirmed that G20 economies appeared to continue to implement such measures as part of their overall trade policy. Many support measures with potentially important ramifications for trade were not reported by Members for this review period. It is appropriate to draw a line between these longstanding policies and the large number of new emergency support measures that WTO Members have put in place to mitigate the economic and social turmoil caused by the COVID-19 pandemic. Discussions at the TPRB meeting in December 2019 reinforced the notion that clearer guidance as to how the Secretariat should cover general economic support measures in the Trade Monitoring Reports was needed. Similar views were expressed at the informal meeting of the General Council on COVID-19 measures on 15 May 2020. The review period saw an unprecedented number of general economic support measures put in place by governments as emergency responses to address the economic and social disruption caused by the COVID-19 pandemic.These measures, taken in response to a global health emergency, sought above all to support sectors of the economy heavily affected by the crisis as economies around the world had largely shut down to curb the spread of the virus. Ten G20 economies have volunteered COVID-19 related support measures to the Secretariat, which has identified several more such measures. Most of the 468 COVID-19 related general economic support measures identified, appeared to be of a temporary nature. These measures included grants, monetary measures, fiscal measures, financial measures, measures specifically targeting SMEs, loans, credit guarantees, and stimulus packages. Several measures were one-off grants, others included disbursements staggered over a few months up to three years. Some of these measures form part of emergency rescue programs worth in excess of several trillion US dollars.

A range of other subjects are also covered by this Report. In the Sanitary and Phytosanitary (SPS) Committee, G20 economies continued to be very active in notifying their SPS measures, accounting for 66% of all regular notifications and 35% of emergency notifications since 1995. During the review period, the objective most frequently identified in the SPS measures notified by G20 economies was food safety, accounting for 72% of notifications. Measures maintained by G20 economies are often discussed in the SPS Committee, and around 73% of all specific trade concerns (STCs) raised to date target G20 measures. The top ten WTO Members, in terms of complaints about measures they maintain, are all G20 economies. From 1 February until 15 May 2020, 19 WTO Members submitted a total of 28 SPS notifications and communications related to measures taken in in response to the COVID-19 pandemic. Of these, 15 were submitted by ten G20 economies. Initially, these measures mainly related to restrictions on animal imports and/or transit from affected areas and increased certification requirements, while as of the beginning of

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April, most related to trade-facilitating measures allowing temporary flexibility for control authorities to use electronically certificates for checks.

G20 economies are the most frequent users of the Technical Barriers to Trade (TBT) Committee's transparency mechanisms and have submitted around 42% of all regular TBT notifications since 1995. During the review period, most new regular TBT notifications introduced by G20 economies, including various measures related to the COVID-19 pandemic, indicated as their main objectives the protection of human health or safety. As of 15 May 2020, G20 economies had submitted 20 COVID-19 related TBT notifications out of 53 by all WTO Members. TBT notifications in relation to the COVID-19 pandemic covered a wide range of products including personal protective equipment (PPE), medical equipment, medical supplies, medicines and food. More than half (32 out of 45) of new STCs and all persistent STCs discussed in the TBT Committee during the review period concerned measures maintained by G20 economies. None of the STCs discussed directly referred to measures taken in response the pandemic.

In the area of agriculture, the majority of questions raised in the Committee on Agriculture focused on policies implemented by G20 economies, including questions concerning individual notifications and on specific implementation matters (SIMs). Most of the questions targeted domestic support policies, including those put in place in response to the potential impact of bilateral trade deals and/or increased tariffs implemented by third parties. In relation to the COVID-19 pandemic, three Members informed the WTO of measures to respond to food security threats. A group of WTO Members, including nine G20 economies, issued a joint communication pledging their support to open and predictable agri-food trade while responding to the COVID-19 pandemic.

The Report also outlines the numerous trade issues and concerns raised in the various WTO bodies between mid-October 2019 and mid-May 2020 on measures implemented by G20 economies. Several trade concerns raised during the review period had already been raised in previous periods, indicating persistent and unresolved issues. Some trade concerns were raised in more than one WTO body, suggesting that these concerns involve cross-cutting and technically complex issues and that WTO Members are continuing to use multiple platforms to address various aspects of such concerns.

Work on the implementation of the WTO's Trade Facilitation Agreement advanced. Many Members concluded their domestic ratification processes, raising the total number of acceptances to about 92% of the entire WTO membership, including all G20 economies.

On trade in services, most of the new measures introduced by G20 economies between mid- October 2019 and mid-May 2020 were trade facilitating. However, a significant number of new policies appeared to be trade restrictive. A large proportion of the measures adopted during the review period related to telecommunication services, electronic commerce, and services supplied online, including different types of tax measures. Like in the previous Report, various governments introduced new measures in relation to foreign investment in areas considered strategic or linked to national security. Up to mid-May 2020, most of the 51 measures affecting trade in services that were adopted by G20 economies in response to the COVID-19 pandemic, appeared to be trade- facilitating. The pandemic has had a strong overall impact on services sectors and services trade, and G20 economies adopted a wide array of measures related to specific services sectors and modes of supply in response to the crisis, including to alleviate the impact of social distancing measures adopted for public health reasons.

The Report also draws attention to developments in Trade-Related Aspects of Intellectual Property Rights (TRIPS), with G20 economies continuing to fine-tune their intellectual property (IP) domestic frameworks. Several G20 members implemented specific IP-related measures aimed at facilitating the development and dissemination of COVID-19 related health technologies, as well as at relaxing procedural requirements and extending deadlines for administrative IP matters. Those government measures have been complemented by voluntary action by IP right holders, in particular the sharing of IPRs, in order to support R&D and equal access to relevant health technologies

Work continued in the first months of 2020 to advance negotiations, particularly on fisheries subsidies building on the decision taken by Members at MC11. Groups of Members also continued to pursue discussions on other issues, including electronic commerce, investment facilitation,

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women's economic empowerment, domestic regulation in services and, micro, small and medium- sized enterprises (MSMEs). However, delegations' ability to engage in detailed negotiations was constrained by restrictions on movement and the refocusing of priorities on addressing the COVID- 19 pandemic.

Box 1 About the WTO Monitoring Report on G20 Trade Measures

The Trade Monitoring Report is first and foremost a transparency exercise. It is intended to be purely factual and has no legal effect on the rights and obligations of WTO Members. It is without prejudice to Members' negotiating positions and has no legal implication with respect to the conformity of any measure noted in the report with any WTO Agreement or any provision thereof. The Report aims to shed light on the latest trends in the implementation of a broad range of policy measures that facilitate as well as restrict the flow of trade, and to provide an update on the state of global trade. The Report neither seeks to pronounce itself on whether a trade measure is protectionist, nor does it question the right of Members to take certain trade measures. The Reports continue to evolve in terms of the coverage and analysis of trade-related issues, and seek to take into account discussions among G20 economies. Regarding trade remedy actions, it has been highlighted in discussions among G20 economies, as well as more broadly in the WTO, that some of these measures are taken to address what is perceived by some as a market distortion resulting from trade practices of entities in another trading partner. The WTO Anti-dumping and Subsidies Agreements permit WTO Members to impose anti-dumping (AD) or countervailing (CVD) duties to offset what is perceived to be injurious dumping or subsidization of products exported from one Member to another. The Reports are not in a position to establish if, where or when such perceived distortive practices have taken place. The Reports have never categorized the use of trade remedies as protectionist or WTO-inconsistent, or criticized governments for utilizing them. The main objective of monitoring these measures is to provide added transparency and to identify emerging trends in the application of trade policy measures. With respect to sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) issues covered in the Reports, it is important to emphasize that they are neither classified nor counted as trade-restrictive or trade-facilitating, and the increasing trend with respect to the number of notifications of such measures is carefully linked to the transparency provisions of the Agreements only. The Reports have consistently underlined the basic premise that an increased number of SPS and TBT notifications do not automatically imply greater use of protectionist or unnecessarily trade-restrictive measures, but rather enhanced transparency regarding these measures. Finally, the Reports clearly emphasize that the SPS and TBT Agreements specifically allow Members to take measures in the pursuit of a number of legitimate policy objectives. The WTO Secretariat strives to ensure that the Trade Monitoring Reports are factual and objective. Since 2009, the Reports have aimed to provide a nuanced perspective on developments in the area of international trade. For example, the Reports have consistently emphasized that, although the number of specific and often long-term restrictive trade measures remains a source of serious concern, other key factors may influence trade developments. Discussions among G20 economies have also drawn attention to this point and to the fact that, with respect to both, vigilance is required.

Source: WTO Secretariat.

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1 INTRODUCTION

1.1. This twenty-third WTO Trade Monitoring Report reviews trade and trade-related measures implemented by G20 economies during the period from 16 October 2019 to 15 May 2020.1 The G20 Trade Monitoring Reports have been prepared since 2009 in response to the request by G20 Leaders to the WTO, together with the OECD and UNCTAD, to monitor and report on trade and investment measures implemented by G20 economies. The previous Trade Monitoring Report on G20 economies, which covered the period from 16 May to 15 October 2019, was issued on 21 November 2019.

1.2. This Report is issued under the sole responsibility of the Director-General of the WTO. It is a factual transparency exercise and has no legal effect on the rights and obligations of WTO Members. It is without prejudice to the negotiating positions of Members and has no legal implication with respect to the conformity of any measure noted in the Report with any WTO Agreement or any provision thereof. It does not seek to pronounce itself on whether a trade measure is protectionist and it does not question the right of Members to take certain trade measures.

1.3. The Report aims to shed light on the very latest trends in the implementation of a broad range of policy measures that restrict as well as facilitate the flow of trade. It provides an update on the main indicators of the world economy and on the state of global trade. The Reports have continued to evolve in terms of coverage and analysis of trade-related issues, reflecting discussions among and inputs from G20 economies.

1.4. The present Report has been produced in a drastically different and unprecedented context than the previous ones. The outbreak of the COVID-19 pandemic in the second half of the review period, which has triggered a global health crisis with major social and economic ramifications, is covered extensively in this Report. On 24 March 2020, recognizing the unprecedented health crisis presented by the pandemic and noting that Members understandably were responding by introducing legislation and policies to seek to combat this health emergency, the Director-General made a formal request to WTO Members and Observers to provide the WTO Secretariat with information on trade and trade-related measures taken in the context of the current crisis. The Director-General stressed that the request for such information was for transparency purposes only so as to allow delegations to gain a global understanding of the trade-related responses to the crisis. He noted that a similar approach had been adopted in the context of the H1N1 health emergency in 2009-10. This Report contains two separate ad-hoc Annexes (Annexes 5 and 6) which provide information on recorded trade and trade-related measures taken by Members in the area of goods and services in response to the COVID-19 pandemic up to 15 May 2020. These Annexes are provided for transparency purposes and do not question or pass judgment on Members' right to implement any of the measures contained therein. Neither of the Annexes are exhaustive.

1.5. On 15 May 2020 a Special Virtual Meeting of the General Council was held to allow WTO Members to share information and exchange views on COVID-19 trade-related measures.

1.6. From a practical and methodological point of view, and in accordance with the long-standing practice of the WTO Trade Monitoring Exercise of verifying information and measures with Members, the WTO Secretariat implemented an ad-hoc verification process of COVID-19 related measures with Members. In recognition of the fact that some measures did not initially have official government sources, the daily up-date of these measures was listed only on the dedicated COVID-19 page on the WTO Members website, pending verification by the relevant delegation. For those trade and trade-related goods and services measures submitted by delegations, or where official sources were found, a separate list was made available on the WTO public website.2 The cooperation of WTO Members in confirming measures, providing official sources and additional information to increase transparency, was constructive and efficient, especially considering the

1 Unless otherwise indicated in the relevant Section. In addition to the trade policy measures implemented during the period under review and captured by this Report, other actions which impact trade flows may have been taken by G20 economies. 2 Viewed at: https://www.wto.org/english/tratop_e/covid19_e/covid19_e.htm. This dedicated webpage on the WTO website provides detailed information on COVID-19 trade and trade-related measures and is updated regularly.

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challenges caused by remote working conditions. This was particularly evident in the constant decrease in the number of measures where official sources were lacking. WTO Members deserve credit for their active cooperation in assisting the Secretariat in this transparency exercise, including through the notification process to the relevant WTO committees. Finally, the measures listed in Annexes 5 and 6 provide a situation report up to 15 May. A consistent feature of the trade and trade-related measures taken in response to the COVID-19 crisis has been the frequent changes, adjustments and occasional roll-back of such measures to reflect the evolving situation. The updated lists of measures implemented in the context of the current pandemic are available on the COVID-19 page of the WTO website3. The full list of notifications received by the WTO Secretariat in context of the COVID-19 pandemic is also available on the WTO website.4

1.7. The organization of this Report is different compared to previous editions. Each Section, except Section 2, will first cover the regular monitoring of trade and trade-related measures implemented during the review period. Subsequently, each Section will address developments in the context of the COVID-19 pandemic.

1.8. Section 2 of the Report provides an overview of recent economic and trade developments in the G20 economies and will include the most recent forecasts for world trade growth taking into account the global pandemic. Section 3 presents an overview of selected trade and trade-related policy trends. Overviews of policy developments in trade in services and trade-related aspects of intellectual propAerty rights (TRIPS) are included in Sections 4 and 5, respectively.

1.9. Annexes 1 - 4 to this Report include new measures recorded for G20 economies during the review period. Measures implemented outside this period are not included in these Annexes. A summary table, listing all trade measures recorded since the beginning of the trade monitoring exercise in October 2008 with an indication of their status, as updated by G20 delegations, is made available separately and can be downloaded from the WTO's website.5 This information is also publicly available through the Trade Monitoring Data Base (TMDB).6 Annexes 5 and 6 include measures implemented in the context of the COVID-19 pandemic in the area of goods and services, respectively.

1.10. Information on measures included in this Report has been collated from inputs submitted by G20 economies and from other official and public sources. Initial responses to the Director-General's request for information were received from all G20 delegations. These data, as well as information collected from other public and official sources, were returned for verification. Where it has not been possible to confirm the information, this is noted in the Annexes.

1.11. The OECD has contributed three topical boxes to this Report. The first box provides an overview of evidence and policy lessons from the face mask global value chain during the COVID- 19 pandemic. The second box looks at impacts and policy responses to the pandemic in the food and agriculture sector. The third box focuses on the issue of government support and the COVID- 19 pandemic.

3 Viewed at: https://www.wto.org/english/tratop_e/covid19_e/covid19_e.htm. 4 Viewed at: https://www.wto.org/english/tratop_e/covid19_e/notifications_e.htm. 5 Viewed at: https://www.wto.org/english/tratop_e/tpr_e/trade_monitoring_e.htm. 6 Viewed at: http://tmdb.wto.org.

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2 RECENT ECONOMIC AND TRADE DEVELOPMENTS

2.1 Overview

2.1. The COVID-19 pandemic has delivered an unprecedented shock to the global economy, with millions of confirmed cases worldwide. In the absence of a vaccine or other effective medical treatment, governments around the world have adopted social distancing measures to slow the spread of the disease. These require people to remain indoors and work from home if possible while minimizing travel and social contact. Entire sectors of national economies have been forced to shut down, leading to sharp declines in output and employment. The full impact of the pandemic is not yet reflected in most trade data but it is expected to be very significant. Several Sections of this Report outline the trade and trade-related measures adopted around the world in response to the COVID-19 pandemic.

2.2. In its trade forecast of 8 April 2020, the WTO estimated that the volume of world merchandise trade would fall between 13% and 32% in 2020, depending on the duration of the outbreak and the effectiveness of policy responses. Available GDP projections during the latest forecasting exercise did not reflect the changed circumstances in the global economy since March 2020. As a result, the WTO Secretariat found it necessary to generate its own estimates based on plausible assumptions about the course of the pandemic. If these assumptions are realized, world GDP growth could decline by between 2.5% and 8.8% in 2020.1

2.3. The forecast considered two distinct scenarios: (1) a relatively optimistic scenario, with a sharp drop in trade and output followed by a strong recovery starting in the second half of 2020, and (2) a more pessimistic scenario with a steeper initial decline and a prolonged, incomplete recovery. Under both scenarios, the decline in world trade was expected to exceed the trade slump during the financial crisis of 2008‑09. These scenarios were presented as explorations of different possible trajectories for the crisis rather than as precise predictions. Preliminary trade data and trade-related indicators for the first half of 2020 are thus far more consistent with the optimistic scenario than the pessimistic one, but actual outcomes could easily fall within or even outside of the forecast range, depending on how the crisis unfolds.

2.4. Sectors with complex value chain linkages are likely to be among the hardest hit by the crisis. The forecast only covers merchandise trade, but commercial services trade is also likely to see strong declines since several categories of services are directly affected by world-wide transport and travel restrictions. One exception is IT services, demand for which has boomed during the crisis as companies seek technological solutions to facilitate employees working from home.

2.5. Trade was already slowing before the virus struck, weighed down by heightened trade tensions and slowing global economic growth as outlined in previous reports. The volume of world merchandise trade was down 0.7% year-on-year in the second half of 2019 after rising 0.6% in the first half. The pace of decline accelerated in the fourth quarter, with merchandise trade dropping 1.2% compared to the previous period, i.e. equivalent to a 4.6% decline on an annualized basis. For the whole of 2019, merchandise trade volume was down 0.1%, marking the first decline since 2009.

2.6. Trade growth also slowed in nominal US dollar terms in 2019. World merchandise exports fell by 3% to USD 18.89 trillion for the year. World commercial services exports increased by 2% over the same period to USD 6.03 trillion, but the pace of growth was down sharply from 9% in 2018. The slowdown was broad-based, affecting most major economies and regions on both the export and import sides.

2.7. Economic growth eased in major economies in 2019, particularly towards the end of the year. There are no readily available quarterly statistics for gross domestic product (GDP) at the global level, but OECD estimates for the G20 group of economies provide a reasonable approximation. Annualized quarterly GDP growth for the G20 remained at or above 3% in the first three quarters of 2019 before dropping to 2.4% in the fourth quarter.

1 Viewed at: https://www.wto.org/english/news_e/pres20_e/pr855_e.htm.

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2.2 Economic Developments

2.8. Several factors contributed to the sluggish pace of economic growth in 2019, including persistent trade tensions. Trade deals between the United States and China, on the one hand, and the United States and Japan, on the other, may have eased tensions somewhat, but any positive impact from this is likely to be overwhelmed in 2020 by the COVID-19 pandemic. Other factors contributing to economic uncertainty during the review period include the political impasse over Brexit in the United Kingdom, and changes in monetary policy from the US Federal Reserve and the European Central Bank.

2.9. The United States saw quarterly GDP growth slow from an average rate of 0.6% in the first half of 2019 to 0.5% in the second half. Meanwhile, euro area growth fell from 0.3% to 0.2% and China’s growth remained stable at 1.5% over the same period. GDP growth turned negative in the first quarter of 2020 in the United States (-1.3%), the euro area (-3.8%) and China (-9.8%). Further declines are expected in Q2.

2.10. Commodity prices and exchange rates strongly influence nominal trade statistics, which are usually presented in US dollars. This is illustrated by Chart 2.1, which shows recent price trends for primary commodities, and Chart 2.2, which shows effective exchange rates for major currencies.

Chart 2 .1 Prices of primary commodities, January 2014 - April 2020 (Index, January 2014=100 ) 120

100

Food Agricultural raw materials Metals Fuels

Source: IMF Primary Commodity Prices.

2.11. Price fluctuations in the second half of 2019 were dominated by fuels, which fell 22% year- on-year (Chart 2.1). Food prices were flat over the same period (0%), while prices for agricultural raw materials dropped 6%. In contrast, prices for metals rose 14%. Since the start of 2020, commodity prices have fallen across the board due to weak demand stemming from the COVID-19 pandemic. Strong declines were recorded between January and April for food (-11%), agricultural raw materials (-10%), metals (-14%) and fuels (-59%).

2.12. Exchange rates were relatively stable in the second half of 2019 (Chart 2.2). The US dollar appreciated 1.5% against a broad basket of currencies, while the renminbi and euro declined by 1.3% and 1.9%, respectively. The UK pound maintained its value with a decline of just 0.3% over the same period. In contrast, the Japanese yen appreciated 5.4% in the second half of the year.

2.13. The US dollar has appreciated even more since the start of the COVID-19 pandemic, reflecting the currency’s traditional safe haven role. The dollar rose 7.1% in nominal effective

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terms between January and April of 2020 as the virus spread globally. Further strengthening could increase financial strain on net foreign borrowers with large dollar denominated debts.

Chart 2.2 Exchange rate indices for selected economies, January 2014 - April 2020a (Index, January 2014=100) 140

130

120

110

100

United States Japan China Euro area United Kingdom

a Nominal effective exchange rate indices against a broad basket of currencies.

Source: Bank for International Settlements (BIS).

2.3 Merchandise Trade

2.14. Chart 2.3 shows growth in the US dollar value of world merchandise trade (red line) together with contributions to trade growth by income level (stacked bars). World export and import growth may diverge slightly due to differences in the recording of transactions. Year-on- year growth was negative in all four quarters in 2019, with declines of between 2.4% and 3.3%. High-income countries contributed more to the slowdown than low-and-middle-income countries on both the export and import sides. Although the first cases of COVID-19 appeared in December 2019, they are unlikely to have had any measurable impact on trade flows since the number of cases was relatively small at the time and policies to combat the disease were not yet in place.

2.15. Chart 2.4 shows merchandise export and import volume indices for selected economies. Exports stalled for most countries in 2019 as the uncertainty associated with trade tensions remained high. The volume of China’s exports dropped 4% in Q4 after rising 3% in Q3, leaving year-on-year growth stable at -1%. Shipments from the United States and the European Union to the rest of the world were also nearly unchanged in Q4 compared to the previous year, while intra- EU trade was down 1%. On the import side, the United States and India recorded quarterly declines of 5% and 11% in Q4 while China’s imports increased by 6%. Extra-EU imports recorded a modest decline of 2% in Q4.

2.16. Monthly merchandise trade statistics in nominal US dollar terms are more timely than quarterly statistics in volume terms. These are shown in Chart 2.5 for selected economies through March or April depending on data availability. The United States and China both recorded large year-on-year declines in imports in April, -21% and -14% respectively. Extra-imports of the European Union were down 14% in March, but a stronger contraction is expected for April fully reflecting world-wide transport and travel restrictions due to the COVID-19 pandemic. Chinese exports were up 3% in April after falling 7% in March. Meanwhile, shipments from the United States were down 29%. Extra-exports of the European Union were already down 12% March, with a larger contraction anticipated for April.

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2.17. Trade figures for other countries with reported data for April were also strongly negative. India’s exports and imports for the month were both down 60% compared to the previous year. Shipments to and from the Republic of Korea were also down sharply, with exports dropping 25% and imports falling 16%. South Africa’s exports and imports were down 61% and 37%, respectively, in April. Nominal trade statistics should be interpreted with caution since they can be strongly influenced by prices and exchange rates, but these declines clearly reflect large changes in quantities as well as prices.

Chart 2.3 Contributions to year-on-year growth in world merchandise exports and imports, 2016Q1 - 2019Q4

(% change in USD values) Exports 20

14.6 15 12.9 13.3 11.6 11.0 5.1 9.2 5.0 5.1 10 7.5 5.0 4.2 4.8 3.8 3.9 5 2.5 9.5 8.0 8.2 6.6 2.3 0.7 6.8 4.4 -0.5 1.8 3.7 1.7 0 -0.9 -1.4 -2.1 -2.5 -2.3 -1.7 -4.3 -2.7 -0.3 -0.8 -0.6 -1.0 -1.9 -2.5 -5 -2.4 -3.2 -3.6 -3.3 -4.6

-10 -8.9

-15

-20 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2018Q3 2018Q4 2019Q1 2016Q1 2017Q3 2017Q4 2018Q1 2018Q2 2019Q2 2019Q3 2019Q4

Imports 20

14.7 13.6 15 13.0 11.2 11.0 5.0 9.6 4.8 5.0 10 7.9 4.5 5.3 4.6 3.8 4.4 5 9.7 1.7 8.9 8.0 1.4 5.9 6.5 5.0 0.9 3.0 -0.6 4.1 0 -1.2 0.8 -1.6 -1.8 -1.6 -1.5 -3.0 -4.0 -2.1 -1.0 -0.8 -1.4 -2.0 -0.2 -2.6 -2.6 -3.0 -5 -3.3 -3.2 -4.1

-10 -8.1

-15

-20 2016Q1 2016Q3 2016Q4 2017Q1 2017Q4 2018Q2 2018Q3 2019Q1 2019Q2 2019Q3 2016Q2 2017Q2 2017Q3 2018Q1 2018Q4 2019Q4

High income economies Low and middle income economies World, year-on-year percentage change

Note Due to scarce data availability, Africa and Middle East are under-represented in world totals. Source: WTO Secretariat estimates based on data jointly compiled by WTO and UNCTAD.

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Chart 2.4 Volume of exports and imports of selected economies, 2012Q1 - 2019Q4 (Seasonally adjusted volume indices, 2012Q1 = 100) Exports 150

140

130

120

110

100

80 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 2012Q1 2013Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018Q1 2019Q1 Imports

150

140

130

120

110

100

80 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q2 Q3 Q4 Q4 Q2 Q3 Q2 Q3 Q4 Q2 Q3 Q4 Q3 Q4 Q2 Q3 Q4 2012Q1 2013Q1 2014Q1 2015Q1 2016Q1 2017Q1 2018Q1 2019Q1

United States EU-extra trade EU-intra trade China Japan India

Note: Data for the United States, Japan and the EU were obtained from national statistical sources while figures for China and India are s easonally adjusted Secretariat estimates.

Source: WTO Secretariat and UNCTAD.

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Chart 2.5 Merchandise exports and imports G20 economies, January 2014 – April 2020

(USD billion) United States Japan 300 90 80 250 70 200 60 50 150 40 100 30 20 50 10 0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

European Union (extra-trade) China 250 300

250 200 200 150 150 100 100

50 50

0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

Republic of Korea Australia 60 30

50 25

40 20

30 15

20 10

10 5

0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 Canada Turkey 50 25

40 20

30 15

20 10

10 5

0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 Indonesia Brazil 20 25

20 15

15 10 10

5 5

0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

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Russian Federation India 50 50 45 40 40 35 30 30 25 20 20 15 10 10 5 0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

South Africa France 12 70

10 60 50 8 40 6 30 4 20

2 10

0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

Germany Italy 160 60 140 50 120 40 100 80 30 60 20 40 10 20 0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

United Kingdom Argentina 80 8 70 7 60 6 50 5 40 4 30 3 20 2 10 1 0 0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

Mexico 50

0 J an -14 J an -15 J an -16 J an -17 J an -18 J an -19 J an -20

Imports Exports

Source: IMF International Financial Statistics, Global Trade Information Services, the Global Trade Atlas database, and national statistics.

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Chart 2.6 Commercial services exports and imports of selected economies, 2018Q4- 2019Q4 (Year-on-year % change in current USD values) Exports 30

-5

-10

-15 United States European United Japan C hi na India Brazil Russian Union (extra) Kingdom Federation

Imports

-5

-10

-15 United States European United Japan C hi na India Brazil Russian Union (extra) Kingdom Federation

2018Q4 2019Q1 2019Q2 2019Q3 2019Q4

Source: WTO Secretariat and UNCTAD.

2.18. There were no systematic trends on the import side. The United States recorded moderate growth between 4% and 6% in all four quarters. Growth fluctuated between -2% and 8% in the European Union, while China’s imports contracted in the second, third and fourth quarters.

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2.19. Global services trade is likely to see a strong negative impact from the COVID-19 pandemic since world-wide travel restrictions prevent the delivery and consumption of services abroad. One category of services trade that may see an upturn in activity as a result of the pandemic is IT services, demand for which has risen to accommodate more people working remotely.

2.4 Trade in Commercial Services

2.20. Recent developments in commercial services trade are shown in Chart 2.6 for selected countries from 2018Q4 to 2019Q4. Services exports of major economies diverged in 2019, with high income countries such as the United States and Euro Area recording modest year-on-year growth in US dollar values, and Asian economies such as China, Japan and India recording faster growth. India and China both saw their export growth weaken over the course of 2019. By the fourth quarter India’s export growth had slowed to near 0% from 10% in 2018. China’s export growth slowed to 6% from 14% over the same period. Other developments in trade in services are covered in Section 4.

2.5 Trade Forecast and Economic Outlook

2.21. The WTO’s trade projections for 2020 and 2021 from last April are presented in Table 2.1 and illustrated by Chart 2.7 below. The forecast considered two scenarios for how the COVID-19 crisis might unfold: (1) an optimistic scenario where the pandemic is short lived and social distancing policies are withdrawn fairly quickly, and (2) a pessimistic scenario where the outbreak is prolonged and social distancing remains in place for much longer. The volume of world merchandise trade would contract by 12.9% in 2020 in the first scenario and by 31.9% in the second. World real GDP at market exchange rates would also shrink by 2.5% in the first case and 8.8% in the second (Table 2.1). Preliminary trade data and trade-related indicators for Q1 and Q2 are thus far more consistent with the optimistic scenario than the pessimistic one. However, adverse developments including a second wave of COVID-19 cases could still lead to more negative outcomes.

Chart 2 .7 World merchandise trade volume, 2000-22 Index, 2015=100 140

130

120

110

100

Merchandise trade Optimistic scenario Pessimistic scenario

Trend 1990-2008 Trend 2011-2018 Source: WTO Secretariat.

2.22. Under the more optimistic scenario, there would be a 21.3% rebound in 2021, strong enough to bring trade back to its pre-pandemic trend represented by the orange dotted line in Chart 2.7. Under a more pessimistic set of assumptions the recovery in 2021 would be larger in

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percentage terms (24%) but still insufficient to bring about a reversion to the pre-pandemic trend. Is it worth recalling that trade never reverted to trend following the global financial crisis just over a decade ago. A slower-than-expected economic recovery in 2021 could also see trade expansion fall short or these projections.

2.23. There is a very high degree of uncertainty associated with the current forecast due to the unprecedented nature of the shock to the global economy as a result of the COVID-19 pandemic. Projections will need to be regularly checked against incoming data going forward. Trade-related indicators provide some clues about the extent of the downturn in 2020 and how it compares to earlier crises. For instance, automobile sales were down 78% in the European Union and 47% in the United States in April compared to the previous year, signalling weak consumer demand. An index of new export orders derived from purchasing managers’ indices also plunged to a record low of 27.3 in April, below the previous minimum of 30.6 from December 2008 (Chart 2.8). Together, these statistics suggest a severe slump for merchandise trade extending into the second quarter at least, and likely beyond.

Chart 2.8 New export orders from purchasing managers’ indices, January 2008 – April 2020

(Index, base =50) 60

30 30.6 27.3

Source: IHS Markit, JP Morgan Global PMI.

Table 2.1 Merchandise trade volume and real GDP growth, 2018-21

(Annual % change) Optimistic Pessimistic Historical scenario scenario 2018 2019 2020a 2021a 2020a 2021a Volume of world merchandise tradeb 2.9 -0.1 -12.9 21.3 -31.9 24.0 Exports North America 3.8 1.0 -17.1 23.7 -40.9 19.3 South and Central America 0.1 -2.2 -12.9 18.6 -31.3 14.3 Europe 2.0 0.1 -12.2 20.5 -32.8 22.7 Asia 3.7 0.9 -13.5 24.9 -36.2 36.1 Other regionsc 0.7 -2.9 -8.0 8.6 -8.0 9.3

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Optimistic Pessimistic Historical scenario scenario 2018 2019 2020a 2021a 2020a 2021a Imports North America 5.2 -0.4 -14.5 27.3 -33.8 29.5 South and Central America 5.3 -2.1 -22.2 23.2 -43.8 19.5 Europe 1.5 0.5 -10.3 19.9 -28.9 24.5 Asia 4.9 -0.6 -11.8 23.1 -31.5 25.1 Other regionsc 0.3 1.5 -10.0 13.6 -22.6 18.0 Real GDP at market exchange rates 2.9 2.3 -2.5 7.4 -8.8 5.9 North America 2.8 2.2 -3.3 7.2 -9.0 5.1 South and Central America 0.6 0.1 -4.3 6.5 -11.0 4.8 Europe 2.1 1.3 -3.5 6.6 -10.8 5.4 Asia 4.2 3.9 -0.7 8.7 -7.1 7.4 Other regionsc 2.1 1.7 -1.5 6.0 -6.7 5.2 a Figures for 2020 and 2021 are projections. b Average of exports and imports. c Comprise Africa, Middle East and the CIS including associate and former member States. Sources: WTO Secretariat for trade, consensus estimates for GDP.

2.24. The box below provides the latest trends in world merchandise trade as captured by the WTO's Goods Trade Barometer.

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Box 2.1 The WTO Goods Trade Barometer

The WTO’s most recent Goods Trade barometer of 20 May 2020 was the first to fully reflect the initial stages of the COVID-19 pandemic. The indicator is designed to provide "real-time" information on the trajectory of world merchandise trade relative to recent trends a few months ahead of conventional trade statistics. Information on several trade-related variables is combined to produce a single composite leading index for world trade, with values greater than 100 indicating above-trend growth and values less than 100 indicating the opposite. The Goods Trade Barometer fell precipitously to 87.6 in May, well below the index's baseline value of 100, suggesting a sharp contraction in merchandise trade extending into the second quarter. (See Chart below. Note that the barometer for May is mostly based on data through the month of March). The Barometer's component indices include the following:

• New Export Orders derived from Purchasing Managers’ Indices (PMIs), • Automobile production and sales in major economies, • Container port throughput in twenty food equivalent units (TEU), • An air freight index from the International Air Transport Association (IATA). • Customs data on trade in electronic components in physical units • Customs data on agricultural raw materials trade in physical units.

All component indices were below trend in May. The automotive products index was weakest (79.7), reflecting sharply lower car sales and production in leading economies. A decline in the forward-looking export orders index (83.3) suggested weak trade growth in the near term. Declines in container shipping (88.5) and air freight (88.0) would seem to reflect weak demand for traded goods as well as supply-side constraints arising from efforts to prevent the spread of COVID-19. Only electronic components (94.0) and agricultural raw materials (95.7) showed signs of stabilizing, although they too remained below trend. Trade was already been slowing in 2019 before the COVID-19 pandemic as persistent trade tensions weighed on the global economy. WTO trade statistics show that the volume of world merchandise trade shrank by 0.1% in 2019, marking the first contraction since 2009. Goods trade barometer Index value, Mar 2020 Index history, trend = 100

110

105

100

90 Goods trade barometer World merchandise trade volume 85

2011M01 2011M07 2012M01 2012M07 2013M01 2013M07 2014M01 2014M07 2015M01 2015M07 2016M01 2016M07 2017M01 2017M07 2018M01 2018M07 2019M01 2019M07 2020M01

Note: The WTO Services Trade Barometer will be updated later this year. Source: WTO Secretariat.

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3 TRADE AND TRADE-RELATED POLICY DEVELOPMENTS

3.1 Overview of trends identified during the review period

Introduction

3.1. This Section seeks to provide analysis of selected trade and trade-related policy developments during the period from mid-October 2019 to mid-May 2020. It is divided into two parts. The first part deals with regular, i.e. non COVID-related, measures implemented during the review period, including the usual calculations on trade coverage.1 The second part in Section 3.1.2, covers measures taken in the context of the COVID-19 pandemic. Measures in the second part are not included in the trade coverage calculations and are not counted towards the aggregate numbers in part one.

3.2. A total of 264 trade measures were recorded for the G20 economies during the review period (Chart 3.1).2 This figure includes measures facilitating trade, trade remedy measures and other trade and trade-related measures. Chart 3.2 below illustrates the trade coverage of the measures recorded for the G20 economies during the review period. These measures are covered in detail below.

Chart 3.1 G20 trade and trade-related measures, mid-October 2019 to mid-May 2020 (By number) 264

148 55 30 31

Trade remedy initiations Trade remedy terminations

Measures facilitating trade Trade-restrictive measures

Note: COVID-19 trade and trade-related measures are not included. Those measures are covered in Section 3.1.2 and in Annex 5. Source: WTO Secretariat.

Chart 3.2 Trade coverage of G20 measures, mid-October 2019 to mid-May 2020 (USD billion) 1,180

25 736 418 2

Trade remedy initiations Trade remedy terminations

Import-facilitating measures Import-restrictive measures

Note: COVID-19 trade and trade-related measures are not included.

Source: WTO Secretariat.

1 COVID-19 trade and trade-related measures are not included. Those measures are covered in Section 3.1.2 and in Annex 5. 2 See Annexes 1-3. These Annexes do not include SPS and TBT measures which are covered in Sections 3.3 and 3.4. Services measures are analysed in Section 4 and are listed in Annex 4.

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Measures facilitating trade

3.3. Annex 1 to this Report lists measures which are clearly trade-facilitating.

3.4. During the review period, 30 new measures aimed at facilitating trade were recorded for G20 economies (Table 3.1), including 11 of a temporary nature. This represent 11% of the total number of measures recorded. Despite showing the highest trade coverage of import-facilitating measures since 2012, the monthly average of 4.3 trade-facilitating measures recorded for the period is the lowest recorded since 2012.

Table 3.1 Measures facilitating trade (Annex 1)

19 to May

- Oct Type of measure 2012 2013 2014 2015 2016 2017 2018 2019 19 Oct - - May 20 (7 - months) mid (5months) Mid to mid Mid

Import 83 63 71 66 59 60 71 54 34 27 - Tariff 72 50 58 55 51 49 63 51 32 23 - Customs procedures 8 12 9 7 6 9 4 1 1 1 - Tax 1 1 0 3 2 2 3 1 1 3 - QRs 2 0 4 1 0 0 1 1 0 0 Export 7 4 5 19 12 18 8 5 2 2 - Duties 3 2 2 10 5 1 5 4 2 2 - QRs 3 2 1 2 1 1 0 0 0 0 - Other 1 0 2 7 6 16 3 1 0 0 Other 4 1 1 2 2 0 0 1 0 1 Total 94 68 77 87 73 78 79 60 36 30 Average per month 7.8 5.7 6.4 7.3 6.1 6.5 6.6 5.0 7.2 4.3

Note: Revisions of the data reflect changes undertaken in the TMDB to fine-tune and update the available information. COVID-19 trade and trade-related measures are not included. Those measures are covered in Section 3.1.2 and in Annex 5. Source: WTO Secretariat.

3.5. Table 3.1 shows that, as for the previous periods, the reduction or elimination of import tariffs continue to make up the bulk of trade-facilitating measures, followed by the elimination of import taxes3, and the simplification of customs procedures. On the export side, reductions of export duties were recorded.4

3.6. The trade coverage of the import-facilitating measures introduced during the review period was estimated at USD 735.9 billion, i.e. 4.9% of the value of G20 merchandise imports.5 This share is the highest reported for these types of measures since November 2014 (Table 3.2 and Chart 3.3). The HS Chapters within which most of the trade facilitating measures were taken include electrical machinery and parts thereof (HS 85) 28.3%, machinery and mechanical appliances (HS 84) 10.2%, plastics and articles thereof (HS 39) 6.3%, and mineral fuels and oils (HS 27) 5.9%.

3 For example, imports of certain products exempted from the Special Welfare Surcharge and the Health Cess by India. 4 For example, reduction of export duties on leather, raw hides and skins; and increased on the VAT rebate rate on 1,084 products. 5 These figures include one measure by China (imposition of interim tariffs resulting in temporary reduction of import tariffs on certain products), amounting for 61.9% of the total; and one measure by the United States (reduction of ad valorem additional duties on products from China), amounting for 20.3% of the total.

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Table 3.2 Share of trade covered by trade-facilitating measures

- - - -

- - - - to to to 17 17 18 19

Oct Oct Oct

May May May

- - - 16 to - - -

18 19 20 Mid Mid Mid Mid mid mid mid mid 17to 18to 19to Oct Oct Oct May May May May Mid Mid Mid Oct mid mid mid

Share in 1.29% 0.22% 0.68% 1.59% 2.92% 0.61% 4.88% G20 imports Share in total 0.99% 0.17% 0.52% 1.23% 2.28% 0.48% 3.78% world imports

Note: Estimates are based on calendar year data. For example, data for mid-October 2018 to mid-May 2019 are based 2018 calendar year data. For some countries, 2019 import data were not yet available. The data for the previous full calendar year were used for those countries.

Source: WTO Secretariat and UNSD Comtrade database.

Chart 3.3 Trade coverage of new import-facilitating measures identified in each period (not cumulative) (USD billion) 800 736

700

600

500

397 400 362

300 216 200 163

87 100 132 65 33 27 83 93 0

Trade remedy actions

3.7. During the review period, 203 trade remedy actions were recorded for G20 economies, i.e. 77% of all non-COVID related trade measures recorded in this Report.6 An overview of these measures can be found in Annex 2. The monthly average of trade remedy initiations during the review period was 21.1 (Table 3.3 and Chart 3.4), slightly higher than the average over the last eight years (19.8). Anti-dumping initiations continue to be the most frequent trade remedy action, accounting for around 80% of all initiations during the review period. The monthly average of trade remedy terminations recorded is the lowest since 2012.

6 A single methodology for the counting of AD and CVD investigations is being applied across the Report, i.e. based on the number of exporting countries or customs territories affected by an investigation or by a termination. Thus, one AD or CVD investigation involving imports from n countries/customs territories is counted as n investigations. Similarly, the termination of an AD or CVD action is counted as n terminations.

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Table 3.3 Trade remedy actions (Annex 2)

19 to 19 (5 19 to

Type of measure 2012 2013 2014 2015 2016 2017 2018 2019 May - Oct Oct May - - - months) (7 months) mid Mid mid Mid

Initiations 201 278 258 210 262 258 223 214 134 148 - AD 166 238 208 175 226 213 168 167 112 117 - CVD 22 33 37 31 30 39 47 35 16 28 - SG 13 7 13 4 6 6 8 12 6 3 Average per month 16.8 23.2 21.5 17.5 21.8 21.5 18.6 17.8 26.8 21.1 Terminations 161 153 171 151 142 113 182 136 48 55 - AD 130 135 144 122 120 93 162 124 47 53 - CVD 21 15 21 19 15 10 20 7 1 0 - SGa 10 3 6 10 7 10 0 5 0 2 Average per month 13.4 12.8 14.3 12.6 11.8 9.4 15.2 11.3 9.6 7.9

a The figure for a specific year is the sum of the following: (i) investigations terminated during the course of that specific year without any measure; and (ii) all imposed measures expired during the course of that specific year. The figures are normally taken as of October of each year. COVID-19 trade and trade-related measures are not included. Those measures are covered in Section 3.1.2 and in Annex 5. Note: The information on trade remedy actions for 2012 to 2019 is based on the semi-annual notifications. For the present review period, the information is also based on the responses and the verifications received directly from Members. Source: WTO Secretariat.

Chart 3.4 G20 Trade remedy initiations and terminations

(Average per month) 30

25 23 22 22 22 21

20 19 18 18 17

15 15 14 13 13 13 12 11 10 10 9 8

0 2012 2013 2014 2015 2016 2017 2018 2019 Mid-May 19 to Mid-O ct 19 to mid- Oct 19 mid- May 20

Initiations average per month Terminations average per month

Source: WTO Secretariat.

3.8. In terms of products, trade remedy actions taken during the review period included initiations of investigations on articles of iron and steel (HS 73) 15.4%, iron and steel (HS 72) 14.9%, aluminium and articles thereof (HS 76) 14.5%, and prefabricated building and certain furniture (HS 94) 13.8%.

3.9. The trade coverage of all trade remedy investigations initiated during the review period was USD 24.5 billion, i.e. 0.16% of the value of G20 merchandise imports (Table 3.4). For

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terminations, the trade coverage was valued at USD 1.9 billion (0.01% of the value of G20 merchandise imports).

Table 3.4 Share of trade covered by trade remedy initiations

to to to to to 16 17 16

17 18 19

15 to 16 to

Oct Oct Oct Oct May May May May May May May 18 May 19 May 20 ------Oct Oct Oct 19 Oct Oct 17 to 17 Oct to 18 Oct - - - - - Mid mid Mid mid Mid mid mid mid Mid mid mid mid mid Mid Mid Mid Mid Mid

Share in 0.47% 0.11% 0.20% 0.24% 0.43% 0.18% 0.14% 0.11% 0.16% G20 imports Share in total 0.36% 0.08% 0.15% 0.19% 0.33% 0.14% 0.11% 0.09% 0.13% world imports

Source: WTO Secretariat and UNSD Comtrade database.

Other trade and trade-related measures7

3.10. Annex 3 to this Report lists measures which may be considered to have a trade-restrictive effect. A total of 31 new trade-restrictive measures were recorded for G20 economies collectively. Tariff increases account for almost half of all import-restrictive measures recorded, followed by bans.8 On the export side, stricter administrative customs procedures and imposition of duties were recorded (Table 3.5).9 The monthly average of 4.4 trade-restrictive measures recorded for the period is the lowest recorded since 2012.

Table 3.5 Other trade and trade-related measures (Annex 3)

Oct

Type of measure 2012 2013 2014 2015 2016 2017 2018 2019 May to May 20 20 May - - - Oct 19 to to 19 Oct - Mid mid (5 months) (7 months) (7 mid Mid

Import 58 59 45 62 42 36 60 45 24 26 - Tariffs 25 34 29 37 25 20 46 27 15 12 - Customs procedures 25 15 12 19 13 12 2 4 3 2 - Taxes 3 3 2 3 2 1 3 3 2 2 - QRs 4 7 2 3 2 2 8 9 3 8 - Other 1 0 0 0 0 1 1 2 1 2 Export 10 20 14 23 6 11 10 8 4 5 - Duties 1 1 4 5 1 3 6 1 0 2 - QRs 5 4 5 4 1 4 2 2 2 0 - Other 4 15 5 14 4 4 2 5 2 3 Other 8 4 9 9 9 12 0 1 0 0 - Othera 4 0 0 0 3 2 0 1 0 0 - Local content 4 4 9 9 6 10 0 0 0 0 Total 76 83 68 94 57 59 70 54 28 31 Average per month 6.3 6.9 5.7 7.8 4.8 4.9 5.8 4.5 5.6 4.4

a Other than local content measures.

7 Annex 3 does not include SPS, TBT and services measures, which are dealt with in Sections 3.3, 3.4, and 4 and Annex 4. 8 For example, QRs on PET flakes, gold, silver, peas, palm oil, coconuts, and e-cigarettes. 9 For example, sworn declaration requirements on agricultural products, reference values requirements for all exports, export licensing requirements, and prior export authorization.

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Source: WTO Secretariat.

3.11. The measures recorded in Annex 3 cover a wide range of products. The main sectors affected (HS Chapters) were electrical machinery and parts thereof (HS 85) 24.4%, machinery and mechanical appliances (HS 84) 15.1%, precious metals and stones (HS 71) 9.3%, and toys, games and sports requisites (HS 95) 6.1%.

Table 3.6 Share of trade covered by import-restrictive measures (Annex 3)

to to to to 16 17 16

17 18 19

15 to 16 to

Oct Oct Oct Oct May May May May May May May 18 May 19 May 20 ------Oct Oct Oct 17 to 17 Oct to 18 Oct to 19 Oct - - - - - Mid mid Mid mid Mid mid mid mid Mid mid mid mid mid Mid Mid Mid Mid Mid

Share in 0.51% 0.11% 0.37% 0.26% 0.61% 3.53% 2.47% 3.05% 2.77% G20 imports Share in total 0.40% 0.08% 0.29% 0.2% 0.47% 2.73% 1.93% 2.36% 2.14% world imports

Chart 3.5 Trade coverage of new import-restrictive measures identified in each period (not cumulative) (USD billion) 500 481 460

418

400

336 300

200

139 120 104 100 75 68 55 47 25 74 14 39 34 32 0

Source: WTO Secretariat.

3.12. The trade coverage of the trade-restrictive measures affecting imports implemented during the review period was estimated at USD 417.5 billion, i.e. 2.8% of the value of G20 merchandise

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imports (Table 3.6).10 This represents the third highest value recorded since May 2012 (Chart 3.5).

The stockpile of import-restrictive measures

3.13. Accurately estimating the roll-back of import-restrictive measures, and eventually the overall stockpile, is made more complex by the fact that a large number of temporary measures remain in place far beyond the envisaged expiry date. Moreover, the Secretariat does not always get information on changes to reported measures. As a result, the figures below are estimates based on the information recorded in the Trade Monitoring Database since 2009. These estimates are also conditioned by the availability of termination dates of the import-restrictive measures and of the HS codes of products covered.11

3.14. Table 3.7 shows that the stockpile of G20 import restrictions in force has grown steadily since 2009 – in value terms and as a percentage of world imports – and that a significant increase in both took place from 2017 to 2018. This specific jump is largely explained by measures introduced on steel and aluminium, and by tariff increases introduced as part of bilateral trade tensions (but excluding those that have been terminated). It is estimated that, at the end of 2019, some 10.3% of G20 imports were affected by import restrictions implemented by G20 economies since 2009 and still in force. This is the equivalent of USD 1.6 trillion out of a total USD 15.3 trillion of G20 total imports.

3.15. Table 3.7 also shows that the trade coverage for G20 terminations of import restrictions represents 0.09% of G20 total imports, suggesting that the roll-back of such measures remains negligible.

Table 3.7 Cumulative trade coverage of G20 import-restrictive non COVID-19 related measures, 2009-19

(USD billion, unless otherwise indicated) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total imports (world) 12,486 15,163 18,109 18,193 18,483 18,654 16,360 15,812 17,500 19,483 19,523 Total imports (G20) 9,823 11,933 14,263 14,143 14,340 14,451 12,561 12,228 13,615 15,064 15,257 Total G20 import 68.12 114.82 214.60 226.26 369.04 418.51 500.95 506.92 724.23 1,327.78 1,568.36 restrictions in force Share in G20 imports (%) 0.69 0.96 1.50 1.60 2.57 2.90 3.99 4.15 5.32 8.81 10.28 Share in world imports (%) 0.55 0.76 1.19 1.24 2.00 2.24 3.06 3.21 4.14 6.81 8.03 Total G20 import 2.39 13.73 58.67 36.53 32.69 0.19 0.02 3.88 5.44 13.12 restrictions terminated Share in G20 imports (%) 0.02 0.10 0.41 0.25 0.23 0.001 0.0001 0.03 0.04 0.09 Share in world imports (%) 0.02 0.08 0.32 0.20 0.18 0.001 0.0001 0.02 0.03 0.07

Note: For some countries, 2019 import data was not yet available. The data for the previous full calendar year was used for those countries. Source: WTO calculations, based on UNSD Comtrade database.

3.1.2 COVID-19 Trade and trade-related measures

3.16. Annex 5 to this Report lists trade and trade-related measures in the area of goods which have been implemented by G2O economies12 specifically in relation or with reference to the COVID-19 pandemic. The measures contained in Annex 5 were implemented between the end of February and the middle of May 2020. The text below, as well as Annex 5, is an attempt to provide transparency with respect to the measures taken by G20 economies in the face of the multiple challenges caused by COVID-19 pandemic.

10 These figures include one measure by the United States (imposition of an additional duty of 15% on certain products from China), accounting for 50.8% of the total; one measure by India (increase of import tariffs on certain products), accounting for 16.8% of the total; and one measure by Argentina (further increase of the statistical fee), accounting for 15.7% of the total. 11 Only import measures where HS codes were available are included in the calculation. 12 Responses to the Director-General's request for information as well as request for verification for mid-year Report were received from all G20 delegations.

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3.17. As at mid-May 2020, 93 COVID-19 trade and trade-related measures had been recorded for the G20 economies collectively, mostly adopted on a temporary basis.13 Although at the early stages of the pandemic a majority of measures restricted the free flow of trade, the overall picture as of mid-May shows that 65 (70%) of all measures were of a trade facilitating nature. A total of 28 measures (30%) could be considered to have a trade-restrictive effect. Export bans account for more than 90% of all restrictive measures recorded (Chart 3.6).

Chart 3.6 G20 COVID-19 trade and trade-related measures, by mid-May 2020 (By number) 93

65 28

Measures facilitating trade Trade-restrictive measures

Source: WTO Secretariat.

3.18. The implementation of the trade and trade-related measures listed in Annex 5 appears to have come in two clearly identifiable waves. First, in the early stages of the trade response to the COVID-19 pandemic, G20 economies put in place stricter export regulations on personal protective equipment (PPE) such as gloves and masks, on drugs and medicine utilized in the treatment of the virus, on certain medical equipment such as ventilators or other respiratory support equipment, and on disinfectant such as hand sanitizers. Export regulations came in the shape of new requirements for authorization to export, specific quotas and, in some cases, outright export bans. Second, subsequent restrictive trade measures targeted mainly basic food products such as rice, vegetables, buckwheat, cereals, soya beans, sunflower seeds and prepared food from buckwheat.

3.19. Annex 5 shows that the reduction or elimination of import tariffs make up one-third of trade facilitating measures, followed by the simplification of customs procedures (23%). Certain G2O economies reduced their tariffs on a variety of goods such as PPE, sanitizers, disinfectants, medical equipment and medicine/drugs. In many cases, tariff reductions were also accompanied by exemptions from VAT and other taxes. Less burdensome administrative customs procedures have also been implemented worldwide.

3.20. In early May, a gradual phase-out of exports constrains targeting products such as surgical masks, gloves, medicine, and disinfectant had begun. There is further evidence that a roll back of other trade and trade related measures taken in the early stages of the pandemic is also taking place. For instance, around 36% of the COVID-19 specific restrictive measures implemented by G20 economies had been repealed by mid-May.

3.21. By late May 2020, some 152 formal notifications and communications on COVID-19 trade- related measures had been received by the Secretariat from WTO Members and Observers, including from G20 economies. Some WTO Members notified multiple times under the same subject area. Notifications focused largely on SPS, TBT and QRs. About two thirds of the overall notifications were related to SPS and TBT measures, such as trade in personal protective equipment (PPE), food, live animals and medical equipment. Many of these measures aimed at streamlining certification procedures, and moving towards more electronic/digital procedures, including electronic certification, to facilitate access to PPE and other medical equipment necessary to combat the pandemic. Some also focused on COVID-19 risks from international trade in live animals. In the case of the QR notifications, prohibitions and restrictions on the export of personal protective equipment (PPE), sanitizers and disinfectants, and pharmaceuticals were recorded. Some Members also restricted the export of foodstuffs and notified them to the Committee on

13 Only two recorded measures have not been confirmed.

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Agriculture. Around half of the export restrictive measures were notified as temporary. These notifications are described in more detail in subsequent Sections of this Report.

3.22. As of mid-May, 51 COVID-19 measures affecting trade in services were compiled for G20 economies with most of them being trade-facilitating in nature. The measures listed are covered separately in Section 4 and Annex 6.14 The bulk of services measures were related to financial services, telecommunication services, transport services, health services or apply across various sectors.

3.23. Some 23 COVID-19 related measures regarding trade-related intellectual property rights were compiled for G20 economies - and verified by the respective economies - until mid-May 2020. A number of these measures were aimed at facilitating innovation or access with respect to COVID-19-related health technologies, while others eased certain procedural requirements or deadlines for administrative matters. These measures are further covered in Section 5.

3.24. The below box provides a non-exhaustive overview of COVID-19 related export restrictions.

Box 3.1 COVID-19 and related export restrictions

How many countries have introduced export prohibitions and restrictions? As at 18 May 2020, 85 countries and separate customs territories had introduced export prohibitions and restrictions to combat the COVID-19 pandemic (EU Members are counted separately). They include 76 WTO Members (counting the EU member States individually) and nine non-WTO members from all regions. These measures took different forms, including export bans and non-automatic export licensing procedures, but have in common that they mostly prevented exports of these products. While there is considerable diversity with respect to the types of products affected by export restrictions, the majority of the measures have limited the exportation of face and eye protection, protective garments, and gloves, sometimes referred to as Personal Protection Equipment (PPE) or Personal Protection Products (PPP). Sanitizers, pharmaceuticals and foodstuff have also been subject to export limitations, but to a lesser extent. Figure 1 Export prohibitions and restrictions introduced to combat the COVID-19 pandemic, by type of product.

(Number) o

Face and eye protection 77

Protective garments 52

Gloves 49

Sanitizers/ Disinfectants 30

Pharmaceuticals 22

Foodstuffs 20

Medical devices, incl. Ventilators 12 Categories ofCategories products Other medical supplies 11

COVID-19 Test kits 7 Members Non-Members Toilet paper 2

Soap 3

Source: WTO Secretariat based on data available in the Trade Monitoring Report.

For how long will these measures be in place? While it is not possible to determine the duration of all measures that have been recently introduced, and these could eventually be renewed, it is possible to analyse whether the measures have a known end-date and, if they do, what is the expected duration. The information available to the WTO Secretariat suggests that roughly half of these measures have included a specific duration (47%), while the other half did not provided a clear indication of the time-frame for which they are meant to remain in place (53%). For those measures with a known end-date, the average duration is expected to be 98.4 days, with a median of 77 days. While

14 Measures have been compiled for Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, the Russian Federation, South Africa, Turkey, the United Kingdom, and the United States.

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approximately 70% of those measures are intended to be in force for less than three months, three measures indicate that they will remain in force for one year. See Figure 2. Figure 2 Duration in weeks of export measures, number of measures

70%* 25 have an expected duration 53% of less than 3 months do not have a known end-date

15 98.4 days (Average duration)

10 Number of measures of Number

0 ≤3 0 (30, 97] (97, 164] (164, 231] (231, 298] (298, 365] Number of days (range)

* Percentage of measures with a known date. Source: WTO Secretariat based on data in the Trade Monitoring Report.

How much trade is affected by these export restrictions? While it is not technically feasible to have an exact measurement of the value of exports that is being affected by the export prohibitions and restrictions (i.e. because most products covered by the measures do not have a specific tariff line or HS sub-heading that fully identifies them, and the available export data is only at the HS sub-heading level), it is possible to calculate rough estimates of the share of world exports affected by them. One possible way of making this rough estimate for a narrow group of products is by matching the export restrictions with the HS codes covered by the joint World Customs Organization’s and World Health Organization's list of COVID-19-related products. Since only part of a given HS sub-heading is related to the relevant products, these estimates have to be considered as upper limits of the affected trade flow (i.e. they may overestimate the actual value of the exports). Notwithstanding this methodological and data limitation, it would appear that the export prohibitions and restrictions affect, in particular, protective garments and disinfectants and sterilization products, where up to 21.5% and 17%, respectively, of world trade may be affected by these measures. See Table 1. Table 1. Export prohibitions and restrictions introduced to combat the COVID-19 pandemic, by type of product (Number) Section (category of products) Share of world exports (%) COVID-19 test kits 0.1 Protective garments and the like 21.5 Disinfectants and sterilization products 17.0 Oxygen therapy equipment and pulse oximeters 4.8 Other medical devices and equipment 3.0 Other medical consumables 12.0 Vehicles 0.0 Other 0.5

Source: WTO Secretariat based on data in the Trade Monitoring Report and UN COMTRADE.

Have these measures been notified to the WTO? In addition to the information provided by Members pursuant to the trade monitoring exercise, Members are required by the 2012 Decision on Notification Procedures for Quantitative Restrictions (G/L/59/Rev.1) to notify every two years all prohibitions and restrictions that they maintain, including on exports. In principle, new measures should be notified no later than 6 months after their entry into force. As at 18 May 2020, 16 Members (counting the EU member States and the United Kingdom as one) had notified the introduction of export prohibitions or restrictions in light of the COVID-19 pandemic to the Committee on Market Access as part of the QR notifications. Most of the notified measures relate to medical products and, in particular, PPE. Finally, three Members also notified the introduction of export prohibitions or restrictions on foodstuffs, which were also notified to the Committee on Agriculture.

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Thus far, two Members (Bangladesh, Ukraine) have notified the elimination of the measures and one Member (European Union) notified the reduction of products covered by the measures. In terms of transparency and maintaining updated information in the midst of the current crisis, these notifications have clearly increased the predictability around these trade policies. However, it should be noted that compliance with the notification requirements remains incomplete. The confirmed information in the trade monitoring exercise shows that 22 additional Members have imposed export prohibitions and restrictions, and that an additional 11 Members may be imposing them (unconfirmed). Thus, the notification gap appears to include between 22 and 33 Members that have yet to submit a QR notification to the Committee on Market Access. Similarly, information suggests that other Members that have lifted export restrictions have also not notified these.

Source: WTO Secretariat.

3.25. The following box on the face mask Global Value Chain in the COVID-19 pandemic was contributed by the OECD.

Box 3.2 The face mask global value chain in the COVID-19 pandemic

The COVID-19 pandemic has caused a dramatic shortage in the supply of face masks, which is mainly explained by a sudden surge in demand well beyond pre-crisis global production capacity. For example, China was the main manufacturer of surgical masks at the onset of the crisis, with a production of 20 million masks per day. Yet this was not enough to meet domestic demand, which was estimated at 240 million masks per day to equip health, manufacturing and transport workers - more than 10 times its production capacity. Since no country can meet the demand for masks alone, trade is essential. This surge in demand due to the pandemic resulted in bottlenecks in the face mask supply chain, as specialised inputs proved to be hard to manufacture quickly. Non-woven fabric manufactured with polypropylene, a critical component of face masks, proved to be in particularly short supply. The face mask value chain is illustrated below. The face mask value chain and its main bottlenecks during COVID-19

Source: OECD, 2020.

Downstream bottlenecks have also appeared. While varying across countries, including due to the extent of preparedness of health infrastructure, masks have sometimes been in short supply not because of international production chains but because domestic transport, logistics and distribution have been disrupted. To address domestic shortages of masks, many countries put in place restrictions on exports or equivalent measures such as the compulsory purchase by government of all available stocks. These export bans and compulsory purchases are generally temporary, with some already removed. Countries banning exports are not all producers or exporters of masks; non-producers, for example, may have been motivated by a desire to prevent hoarding or to avoid the export of masks already imported to be sold at a higher price abroad. Export restrictions have several consequences. Bans are harmful for countries without production capacity but can also backfire on the country imposing them when they need to import inputs, additional masks or other essential goods. Tariffs or export licenses can delay trade, in addition to increasing prices. Export restrictions can also create uncertainty that impacts firms’ investment strategies and, over time, reduce confidence in

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international markets. Other countries have facilitated trade in masks and other protective equipment by removing tariffs or by suspending licensing and certification requirements. Several countries affirmed their commitment to ensuring supply chain connectivity amidst the COVID-19 pandemic, and many countries temporarily eliminated import tariffs on face masks. However, free trade and trade facilitation were not enough to address the shortage; an important increase in supply was needed, requiring government planning and incentives for firms to convert existing assembly lines and create additional capacity. Production was ramped up by the main exporters of face masks, in particular China. Ultimately, the shortage has been progressively addressed through global supply chains, with certification procedures expedited to allow masks produced by new companies to be traded. The case of face masks in the COVID-19 context demonstrates the importance of robust and resilient supply chains. These can be achieved through strategies that prioritize risk assessment and planning, information sharing, supply redundancy, agility and reactivity. Barriers to trade can limit options available for firms to maintain operations, whereas a stable trade and investment environment offers the transparency and predictability needed to manage risks. Looking ahead, it would be excessively costly for every country to develop production capacity that matches crisis demand and encompasses the whole value chain. An alternative, more effective and cost-efficient solution in the long-term may involve the combination of strategic stocks; upstream agreements with companies for rapid conversion of assembly lines during crises (with possible government incentives and co-ordination); and supportive international trade measures.

Source: OECD, 2020.

3.26. The following box provides a non-exhaustive overview of recent collective and individual declarations or statements by WTO Members on trade-related measures affecting value chains in the context of the COVID-19 Pandemic.

Box 3.3 Recent collective and individual declarations or statements by WTO Members on trade-related measures affecting value chains in the context of the COVID-19 pandemic

In the context of the COVID-19 pandemic, several voluntary and collective declarations or statements by WTO Members have been announced or tabled. They mostly contain pledges to ensure that supply chains remain open and connected, to reduce or eliminate tariffs for essential goods needed for COVID-19 response, and to refrain from imposing export restrictions on such essential goods or on agricultural products. Below is a brief non-exhaustive overview of these initiatives. On 20 March 2020, New Zealand and Singapore issued a Joint Ministerial Statement affirming commitment to ensuring supply chain connectivity amidst the COVID-19 situationa. On 25 March 2020, Australia, Brunei Darussalam, Canada, Chile and Myanmar joined this Ministerial Statementb, followed on 6 April by Lao People’s Democratic Republic and Uruguayc. On 15 April 2020, New Zealand and Singapore launched a Declaration on trade in essential goods for combating the COVID-19 pandemicd. Following this Declaration, New Zealande and Singaporef both pledged individually to eliminate tariffs on products needed for the COVID-19 response and to refrain from imposing export prohibitions or restrictions on essential goods. On 22 April 2020, 23 WTO Members (29 as of 29 May 2020)g issued a Joint Statement titled "Responding to the COVID-19 pandemic with open and predictable trade in agricultural and food products"h. On 1 May 2020, the members of the Association of Southeast Asian Nations (ASEAN) issued a Declaration and two statements on COVID-19i. On 4 May 2020, the LDC Group issued a communication titled "Securing LDCs emergency access to essential medical and food products to combat the COVID-19 pandemic"j. On 5 May 2020, the Asia-Pacific Economic Cooperation (APEC) Ministers responsible for trade issued a Statement on COVID-19k. Also on 5 May 2020, 42 WTO Members (46 as of 29 May 2020)L issued a Joint Ministerial Statement on COVID-19 and the multilateral trading systemm. On 12 May 2020, Australia, Canada, the Republic of Korea, New Zealand and Singapore issued a Joint Ministerial Statement on action plans to facilitate the flow of goods and services, as well as the essential movement of peoplen. On 14 May 2020, the G20 Trade and Investment Ministers issued a Statement endorsing the G20 Actions to support world trade and investment in response to COVID-19o. Finally, also on 14 May 2020, 49 WTO Members (52 as of 26 May 2020)p issued a Statement on highlighting the importance of MSMEs in the time of COVID-19q. Some WTO Members have expressed their further intentions to pursue initiatives on trade-related measures affecting value chains in the context of the COVID-19 pandemic. On 16 April 2020, the EU Commission referred to possible action by the European Union towards temporary suspension of tariffs on medical equipment, a call for an international undertaking to suspend tariffs on COVID-19 related products and facilitate access to medicinesr.

a Viewed at: https://www.mti.gov.sg/-/media/MTI/Newsroom/Press-Releases/2020/03/Joint-Ministerial-Statement- by-SG-and-NZ-Affirming-Commitment-to-Ensuring-Supply-Chain-Connectivity.pdf. b Viewed at: https://www.sgpc.gov.sg/sgpcmedia/media_releases/mti/press_release/P-20200325- 2/attachment/JOINT%20MINISTERIAL%20STATEMENT%20AFFIRMING%20COMMITMENT%20TO%20ENSURING% 20SUPPLY%20CHAIN%20CONNECTIVITY%20AMIDST%20THE%20COVID-19%20SITUATION.pdf.

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c Viewed at: https://www.mti.gov.sg/-/media/MTI/Newsroom/Press-Releases/2020/03/Updated-Joint-Ministerial- Statement-on-supply-chain-connectivity-as-of-6-april.pdf. d WTO document G/C/W/777, 16 April 2020. e WTO document G/C/W/778; G/MA/W/150, 16 April 2020. f WTO document G/C/W/779; G/MA/W/151, 16 April 2020. g Australia; Brazil; Canada; Chile; Colombia; Costa Rica; Ecuador; European Union; Georgia; Hong Kong, China; Japan; Republic of Korea; Malawi; Malaysia; Mexico; New Zealand; Nicaragua; Paraguay; Peru; Qatar; Kingdom of Saudi Arabia; Singapore; Switzerland; Chinese Taipei; Ukraine; United Arab Emirates; United Kingdom; United States; and Uruguay. h Viewed at: https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?MetaCollection=WTO&SymbolList=%22WT%2fGC %2f208%22+OR+%22WT%2fGC%2f208%2f*%22&Serial=&IssuingDateFrom=&IssuingDateTo=&CATTITLE=&Con cernedCountryList=&OtherCountryList=&SubjectList=&TypeList=&FullTextHash=371857150&ProductList=&BodyLis t=&OrganizationList=&ArticleList=&Contents=&CollectionList=&RestrictionTypeName=&PostingDateFrom=&Posting DateTo=&DerestrictionDateFrom=&DerestrictionDateTo=&ReferenceList=&Language=ENGLISH&SearchPage=FE_S _S001&ActiveTabIndex=0&HSClassificationList=&ServicesClassificationList=&EnvironmentClassificationList=&ICSCl assificationList=&ICSClassificationDescList:EnvironmentClassificationDescList:ServicesClassificationDescList:HSClas sificationDescList=&languageUIChanged=true. i WTO document WT/GC/210, 1 May 2020. j WTO document WT/GC/211, 4 May 2020. k WTO document WT/GC/213, 8 May 2020. l Afghanistan; Australia; Barbados; Benin; Cambodia; Canada; Chile; Colombia; Costa Rica; Ecuador; El Salvador; Guatemala; Guyana; Hong Kong, China; Iceland; Israel; Jamaica; Japan; Kenya; Republic of Korea; Kuwait; Liechtenstein; Madagascar; Mauritania; Mauritius; Mexico; the Republic of Moldova; Montenegro; Nepal; New Zealand; Nigeria; North Macedonia; Norway; Papua New Guinea; Peru; Qatar; Saint Lucia; Kingdom of Saudi Arabia; Seychelles; Singapore; Solomon Islands; Switzerland; Ukraine; United Arab Emirates; United Kingdom and Uruguay. m Viewed at: https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?MetaCollection=WTO&SymbolList=%22WT%2fGC %2f212%22+OR+%22WT%2fGC%2f212%2f*%22&Serial=&IssuingDateFrom=&IssuingDateTo=&CATTITLE=&Con cernedCountryList=&OtherCountryList=&SubjectList=&TypeList=&FullTextHash=371857150&ProductList=&BodyLis t=&OrganizationList=&ArticleList=&Contents=&CollectionList=&RestrictionTypeName=&PostingDateFrom=&Posting DateTo=&DerestrictionDateFrom=&DerestrictionDateTo=&ReferenceList=&Language=ENGLISH&SearchPage=FE_S _S001&ActiveTabIndex=0&HSClassificationList=&ServicesClassificationList=&EnvironmentClassificationList=&ICSCl assificationList=&ICSClassificationDescList:EnvironmentClassificationDescList:ServicesClassificationDescList:HSClas sificationDescList=&languageUIChanged=true. n WTO document WT/GC/214, 13 May 2020. o WTO document WT/GC/216, 20 May 2020. p Afghanistan; Albania; Argentina; Australia; Brazil; Canada; Chile; China; Colombia; Costa Rica; Côte d'Ivoire; Ecuador; El Salvador; European Union; Guatemala; Guyana; Honduras; Hong Kong, China; Iceland; Israel; Japan; Kazakhstan; Kenya; Republic of Korea; Lao People’s Democratic Republic; Liechtenstein; Malaysia; Maldives; Mexico; Republic of Moldova; Mongolia; Montenegro; Myanmar; New Zealand; North Macedonia; Norway; Paraguay; Philippines; Qatar; Russian Federation; Saint Vincent and the Grenadines; Kingdom of Saudi Arabia; Singapore; Switzerland; Chinese Taipei; Thailand; Turkey; Ukraine; United Kingdom; Uruguay; Vanuatu and Viet Nam. q Viewed at: https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?MetaCollection=WTO&SymbolList=%22WT%2fGC %2f215%22+OR+%22WT%2fGC%2f215%2f*%22&Serial=&IssuingDateFrom=&IssuingDateTo=&CATTITLE=&Con cernedCountryList=&OtherCountryList=&SubjectList=&TypeList=&FullTextHash=371857150&ProductList=&BodyLis t=&OrganizationList=&ArticleList=&Contents=&CollectionList=&RestrictionTypeName=&PostingDateFrom=&Posting DateTo=&DerestrictionDateFrom=&DerestrictionDateTo=&ReferenceList=&Language=ENGLISH&SearchPage=FE_S _S001&ActiveTabIndex=0&HSClassificationList=&ServicesClassificationList=&EnvironmentClassificationList=&ICSCl assificationList=&ICSClassificationDescList:EnvironmentClassificationDescList:ServicesClassificationDescList:HSClas sificationDescList=&languageUIChanged=true. r Viewed at: https://ec.europa.eu/commission/commissioners/2019-2024/hogan/announcements/introductory- statement-commissioner-phil-hogan-informal-meeting-eu-trade-ministers_en.

Source: WTO Secretariat.

3.2 Trade Remedies15

3.27. This Section provides an assessment of trends regarding the use of trade remedies by G20 economies during the following periods: January – June 2018, July – December 2018, January – June 2019 and July – December 2019.16 It also includes an assessment of these periods on a six-month and 12-month basis, in order to show trends over time.

15 This Section is without prejudice to the right of Members to take trade remedy actions. 16 These periods coincide with the Member's semi-annual reporting periods.

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Anti-Dumping measures17

3.28. The most recent available data (July - December 2019) show an increase of 6% in the number of anti-dumping investigations initiated by G20 members compared to the previous six-month period (January – June 2019). Table 3.8 shows that G20 members initiated 86 anti- dumping investigations in the most recent period, compared with 81 during the previous six- months.

3.29. During 2019, there were declines in the number of investigations initiated by Argentina; Australia; Brazil; Canada; China; Russian Federation; Kingdom of Saudi Arabia; South Africa; Turkey and the United States compared to 2018. In the same period, an increase was seen in the number of investigations initiated by the European Union (from 8 to 11), India (from 32 to 52), Indonesia (from 0 to 6), Japan (from 0 to 1) and Mexico (from 3 to 6). The Republic of Korea initiated the same number of investigations in 2019 compared to 2018. There was essentially no change in the total number of investigations initiated by G20 members between 2018 and 2019.

Table 3.8 Initiations of anti-dumping investigations

Jan-June July-Dec Jan-June July-Dec G20 member 2018 2019 2018 2018 2019 2019 Argentina 14 5 10 7 19 17 Australia 11 1 7 12 7 Brazil 7 0 0 1 7 1 Canada 5 9 0 6 14 6 China 8 8 10 4 16 14 European Union 2 6 5 6 8 11 India 29 3 18 34 32 52 Indonesia 0 0 0 6 0 6 Japan 0 0 0 1 0 1 Korea, Republic of 2 3 4 1 5 5

Mexico 1 2 3 3 3 6 Russian Federationa 5 1 2 2 6 4

Saudi Arabia, 0 3 2 0 3 2 Kingdom ofb South Africac 0 3 0 0 3 0 Turkey 6 0 0 2 6 2 United States 22 12 20 13 34 33 Total 112 56 81 86 168 167

a Notified by the Russian Federation, but investigations were initiated by the Eurasian Economic Union on behalf of all its members collectively. b Notified by all GCC member States collectively as investigations were initiated by the GCC regional investigating authority on behalf of all GCC member States. c Notified by South Africa; investigations were initiated by the Southern African Customs Union on behalf of all its members collectively.

Source: WTO Secretariat.

3.30. In terms of product breakdown, metal products accounted for the largest share (between 25-50%) of initiations over the different reporting periods (Chart 3.7). Steel products (Chapters 72 and 73 of the HS Code) accounted for the large majority of these investigations (97 out of 119) – 81.5%. In many instances, a single importing G20 economy initiated investigations on the same steel product from different sources simultaneously – 9 steel products account for 60 of the investigations over these periods. China continues to be the most frequent subject of investigations on metal products with 19 investigations on its products during 2019, followed by Republic of Korea (6); the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (5)

17 Anti-dumping and countervailing investigations are counted on the basis of the number of exporting countries or customs territories affected by an investigation. Thus, one anti-dumping or countervailing investigation involving imports from n countries/customs territories is counted as n investigations.

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and Viet Nam (5). India initiated 22 investigations in this sector during 2019, followed by United States with 17 and Russian Federation, Argentina, Indonesia and European Union with 4 each.

3.31. Chemical products accounted for the third largest share of initiations in the first half of 2018. They moved to second place in the second half of 2018 and in the first half of 2019 but dropped to sixth place in the second half of 2019. The number of initiations into chemical products decreased from 31 during 2018 to 21 during 2019. Products from China were the most affected, accounting for 15% of the 52 new investigations of products in this sector over the 24 months examined. Japan and China were the most affected G20 economies by initiations in this sector during 2019 (3 each, out of 21), with the remainder targeting a wide range of exporting countries or customs territories.

3.32. Plastics and rubber ranked second in the first half of 2018, dropped to below sixth place in the second half of 2018 and moved to second place in the first half of 2019 (with the same number of initiations as chemical products – 16) and in the second half of 2019. Products from China accounted for 12 of the 60 new initiations in this sector over the 24 months. Textiles, which accounted for 7% of all initiations during the entire reporting period ranked fourth in the first half of 2018, below sixth in the second half of 2018 and first half of 2019, but moved to third in the second half of 2019.

3.33. While anti-dumping investigations do not necessarily lead to the imposition of measures, a rise in the number of investigations initiated is an early indicator suggesting a likely rise in the number of measures imposed. Over the 24 months covered in this Section, a total of 281 anti- dumping measures were imposed by G20 economies (Table 3.9). However, as it can take up to 18 months for an anti-dumping investigation to be concluded once initiated, these measures may not necessarily be the result of initiations in the same period.

Table 3.9 Number of anti-dumping measures imposed by G20 economies

Jan-June July-Dec Jan-June July-Dec G20 member 2018 2019 2018 2018 2019 2019

Argentina 12 1 5 8 13 13 Australia 5 0 10 2 5 12 Brazil 6 3 0 6 9 6 Canada 2 5 8 0 7 8 China 9 14 3 9 23 12 European Union 2 1 1 3 3 4 India 28 9 10 3 37 13 Indonesia 1 0 0 0 1 1 Japan 2 0 0 0 2 0 Korea, Republic of 3 4 2 0 7 2

Mexico 6 1 5 3 7 8 Russian 0 0 1 1 0 2 Federationa Saudi Arabiab 0 0 2 0 0 2 Turkey 8 2 0 0 10 0 United States 24 17 16 17 41 33 Total 108 57 63 52 165 116

a Notified by the Russian Federation, but investigations are initiated by the Eurasian Economic Union on behalf of all its members collectively. b Notified by all GCC member States collectively as investigations are initiated by the GCC regional investigating authority on behalf of all GCC member States.

Source: WTO Secretariat.

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Chart 3.7 G20 anti-dumping initiations, by product

January - June 2018 July - December 2018

Paper Machinery 7% Textiles 9% 8% Metals 25% Stone/Plaster 9%

Others 14% Chemicals Metals 11% 50%

Plastics Chemicals 23% Others 22% 21%

January - June 2019 July - December 2019

Paper Stone/Plaster Textiles 5% Chemicals 3% 5% 6% Stone/Plaster Machinery 7% Metals 7% 30% Machinery Others 7% 9% Metals Others 45% 7% Textiles 10%

Chemicals Plastics 20% 20% Plastics 19%

Note: Values are rounded.

Source: WTO Secretariat.

3.34. Since the first monitoring report was circulated in September 2009, anti-dumping activities of G20 members initially declined through 2011, then rebounded, peaking in 2013, with 238 new investigations initiated (Chart 3.8).18 Following a downward trend in 2014 and 2015, the number of initiations increased again in 2016 reaching 226, then dropped again to 213 in 2017, 168 in 2018 and 167 in 2019.

18 While 2013 shows an important increase in activity, the number of initiations is still significantly lower than the peaks of activity seen in 1999-2002.

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Chart 3.8 G20 initiations of anti-dumping investigations, 2009-19

250 238 226 213 208

200

175 166 168 167 161

150 137 127

100

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: WTO Secretariat.

3.35. As of 15 May 2020, only two G20 economies have notified anti-dumping actions referring to the COVID-19 pandemic. In March 2020 Brazil suspended anti-dumping duties on syringes and vacuum plastic tubes for blood collection, and Argentina suspended anti-dumping duties on syringes and parenteral solutions.

Countervailing Measures

3.36. The most recent available data (July - December 2019) show a significant increase of 50% in the number of countervailing duty investigations initiated by G20 members compared to the previous six-month period (January - June 2019). Table 3.10 shows that G20 economies initiated 21 countervailing duty investigations in the most recent period, compared with 14 during the previous 6 months. On an annual basis, however, the number of initiations decreased to 35 in 2019 from 47 in 2018.

Table 3.10 Initiations of countervailing duty investigations by G20 members

Jan-June July-Dec Jan-June July-Dec G20 member 2018 2019 2018 2018 2019 2019 Australia 2 1 0 0 3 0 Brazil 0 0 0 0 0 0 Canada 4 0 0 3 4 3 China 1 2 0 1 3 1 European Union 1 1 3 2 2 5 India 1 9 0 9 10 9 Turkey 1 0 0 0 1 0 United States 17 7 11 6 24 17 Total 27 20 14 21 47 35

Source: WTO Secretariat.

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3.37. Various sectors were targeted by countervailing investigations over the four periods, with metal products accounting for 34 of the 82 initiations by G20 members over the 24 months examined. Twenty-six of these investigations involving the metals sector concerned steel products. Almost all the investigations involving the metals sector were conducted concurrently with an anti-dumping investigation on the same product.

3.38. Over the 24 months examined, the plastics and chemical sectors accounted for the second- and third-largest numbers of investigations, with 8 initiations each. The remaining investigations covered a range of goods, including stone/plaster, wood, minerals, vehicles and textile products (Chart 3.9). Chart 3.9 G20 initiations of countervailing investigations, by product

January - June 2018 July - December 2018

Minerals Minerals 7% Vehicles 5% 5% Vehicles 7% Plastics Metals 5% 33% Textiles Others 10% 15% Metals 45%

Others 15% Chemicals 15% Plastics 22% Chemicals 15%

January - June 2019 July - December 2019

Others Chemicals 5% Minerals 5% 14% Plastics 5%

Metals Stone/Plaster 36% 10%

Others Metals 21% 52%

Wood 24%

Stone/Plaster 29%

Note: Values are rounded. Source: WTO Secretariat.

3.39. Since the first Trade Monitoring Report in 2009, the number of countervailing investigations of G20 economies initially declined in 2010. Following a downward trend in 2015 and 2016, the number of initiations increased again in 2017, and peaked in 2018, with 47 new investigations

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initiated (Chart 3.10). The number of initiations in 2019 stands at 35, a 26% decrease compared to 2018.

Chart 3.10 Countervailing investigations initiated by G20 members, 2009-19

50 47

40 39 37 35 33 31 30 30 26 23 22

10 9

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: WTO Secretariat.

3.40. Over the 24 months covered in this Section, a total of 57 countervailing measures were imposed by G20 economies (Table 3.11). However, as it can take up to 18 months for a countervailing investigation to be concluded, these measures may not necessarily be the result of initiations in the same period. This lag may account for the slight increase in the number of measures applied in 2019 compared with 2018, despite the decrease recorded in the number of investigations initiated.

3.41. As of 15 May 2020, no countervailing duty action that referred to the COVID-19 pandemic has been notified by G20 members.

Table 3.11 Number of countervailing measures imposed by G20 members

Jan-June July-Dec Jan-June July-Dec G20 member 2018 2019 2018 2018 2019 2019 Australia 0 0 1 0 0 1 Brazil 1 0 1 0 1 1 Canada 1 5 0 0 6 0 China 1 0 0 0 1 0 European Union 0 1 2 1 1 3 India 0 0 1 4 0 5 United States 13 5 13 7 18 20 Total 16 11 18 12 27 30

Source: WTO Secretariat.

Anti-dumping and countervailing measures by trading partner

3.42. Chart 3.11 shows the top six trading partners affected by trade remedy initiations (excluding safeguards) reported by each G20 economies between 2008 and 2019. China remained, by far, the most targeted exporter by initiations reported during this period, accounting for one third of the reported initiations (31%). The second most targeted exporter, the Republic of Korea, accounted for 7% of total initiations. The share of G20 initiations involving products from other G20 members accounted for approximately 71% of total initiations. In all reporting periods, initiations on products from other G20 economies accounted for the majority of each individual G20 member's total initiations.

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Chart 3. 11 Anti-dumping and countervailin g initiations, by trading partner, 2008-19 (Number of initiations January 2018 – December 2019) Argentina Australia

China China

Br azil Korea, Rep. of

Indi a Thailand

United States Chinese Taipei

Peru Malaysia G-20 as share of total: 79% G-20 as share of total: 63% Korea, Rep. of Indonesia

G-20 G-20

0 20 40 60 80 100 120 140 160 0 20 40 60 80 100 120

Brazil Canada

China China

Indi a Korea, Rep. of

Korea, Rep. of Turkey

United States Vi et Nam

Chinese Taipei Indi a G-20 as share of total: 72% G-20 as share of total: 63% Germany Thailand

G-20 G-20

0 50 100 150 200 250 0 20 40 60 80 100 120

China European Union

United States China

EU Indi a

J apan United States

Korea, Rep. of Turkey

Indi a Indonesia G-20 as share of total: 84% G-20 as share of total: 74% Thailand Russian Fed

G-20 G-20

0 20 40 60 80 100 120 140 0 20 40 60 80 100 120 140 160 India Indonesia

China China

Korea, Rep. of Malaysia

EU Korea, Rep. of

Thailand Chinese Taipei

Chinese Taipei Thailand G-20 as share of total: 64% G-20 as share of total: 53% Malaysia Indi a

G-20 G-20

0 50 100 150 200 250 300 350 0 10 20 30 40 50 Japan Korea, Rep. of China China J apan

Korea, Rep. of Thailand Malaysia

Indonesia Chinese Taipei G-20 as share of total: 100% G-20 as share of total: 63% United States G-20 G-20

0 1 2 3 4 5 6 7 8 9 0 5 10 15 20 25 30 35

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Mexico Russian Federation

China China

Indi a Ukraine

United States Hong Kong, China

'K o re a , R e p. o f Macao, China

Spain Chinese Taipei G-20 as share of total: 89% G-20 as share of total: 58% J apan European Union

G-20 G-20

0 10 20 30 40 50 60 70 0 5 10 15 20 25 30

Saudi Arabia South Africa

China China

Spain Br azil

Indi a Indi a

It al y Malaysia

J apan Netherlands G-20 as share of total: 60% G-20 as share of total: 71% Korea, Rep. of Germany

G-20 G-20

0 1 2 3 4 5 6 7 0 5 10 15 20 25

Turkey United States

China China

Indi a Indi a

Korea. Rep. of Korea, Rep. of

Thailand Turkey

Malaysia Chinese Taipei G-20 as share of total: 64% G-20 as share of total: 77% Indonesia Vi et Nam G-20 G-20 0 10 20 30 40 50 60 70 80 0 100 200 300 400

Notes: Argentina, Indonesia, Japan, the Republic of Korea, and the Kingdom of Saudi Arabia (at GCC level) initiated anti-dumping investigations only. While initiations/measures could target the EU as a whole, they could also specifically target a particular EU member State.

Source: WTO Secretariat.

Safeguard measures

3.43. Safeguard measures are temporary measures imposed in response to increased imports of goods that are causing serious injury, and are imposed on products from all sources (i.e. all exporting countries).19 Thus, safeguards are subject to different rules and timelines than anti- dumping and countervailing measures, and therefore are not directly comparable to those measures.

3.44. Chart 3.12 shows the trend of G20 initiations of safeguard investigations, together with the trend of G20 impositions of measures, on a calendar-year basis, since 2009.

19 With the exception of special and differential treatment provided for developing countries in Article 9.1 of the Safeguards Agreement.

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Chart 3.12 Initiations of safeguard investigations and impositions of safeguard measures by G20 members, 2008-19

13 13 12 11 10 10 9 9 8 7 7 7 6 6 6 5 5 5 4 4 4 4 3 2 2

0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Initiations Impositions

Notes: Some notifications are ambiguous about the timing when measures take effect. For those, WTO Members sometimes subsequently file an additional notification clarifying, ex post, the timing of the taking of effect. For this reason, the number of impositions indicated in past reports can differ from the figures indicated in the most recent report. Since impositions, if any, take place when the investigations are concluded, and investigations usually take more than 1-2 months, imposed measures may not necessarily be the result of initiations in the same period/year. Source: WTO Secretariat.

3.45. In the period covered by the Chart, the number of G20 members' initiations peaked in 2012 and 2014. From this high level, the number of initiations fell in 2015. Since then, the figure has gradually been increasing. The number of initiations stood at 12 for 2019, close to the peaks of 2012 and 2014.

3.46. As for G20 members' impositions of safeguard measures, the recent peaks were in 2011 and 2014. Since then, the number declined to its most recent low in 2016. Since then, the figure has increased again and stood at 7 in 2019. This figure is close to the peaks of 2011 and 2014.

3.47. Table 3.12 shows the G20 members that initiated safeguard investigations, on a 6-month basis. Table 3.13 shows the number of impositions of safeguard measures by G20 economies, during the same period. It is noteworthy that non-traditional users of safeguards, like Canada, the European Union and the Eurasian Economic Union, imposed safeguard measures during 2019, all on steel products.

Table 3.12 Initiations of safeguard investigations by G20 members

Jan-June July-Dec Jan-June July-Dec G20 member 2018 2019 2018 2018 2019 2019 Canada 0 1 0 0 1 0 European Union 1 0 0 0 1 0 India 0 0 0 3 0 3 Indonesia 1 1 1 4 2 5 Russian Federationa 0 1 2 0 1 2 Saudi Arabia, Kingdom 0 0 0 1 0 1 ofb South Africac 1 0 1 0 1 1 Turkey 1 1 0 0 2 0 Total 4 4 4 8 8 12

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a Identified here as Russian Federation for brevity, but investigations were initiated by the Eurasian Economic Union on behalf of all its members collectively. b Notified by the Kingdom of Saudi Arabia, but investigations were initiated at the level of the Gulf Cooperation Council on behalf of all its members collectively. c Notified by South Africa, but investigations were initiated by the Southern African Customs Union on behalf of all its members collectively.

Source: WTO Secretariat.

Table 3.13 Safeguard measures imposed by G20 members

Jan-June July-Dec Jan-June July-Dec G20 Member 2018 2019 2018 2018 2019 2019 Canada 0 0 1 0 0 1 European 0 0 1 0 0 1 Union India 0 1 0 0 1 0 Indonesia 0 1 0 1 1 1 Russian 0 0 0 1 0 1 Federationa Saudi Arabia, 1 0 1 0 1 1 Kingdom ofb South Africac 0 0 1 0 0 1 Turkey 0 0 0 1 0 1 United States 2 0 0 0 2 0 Total 3 2 4 3 5 7

a Identified here as Russian Federation for brevity, but measures were imposed by the Eurasian Economic Union on behalf of all of its members collectively. b Notified by the Kingdom of Saudi Arabia, but all measures were imposed at the level of the Gulf Cooperation Council behalf of all of its members collectively. c Notified by South Africa, but all measures were imposed by the Southern African Customs Union on behalf of all of its members collectively. Source: WTO Secretariat.

3.48. Chart 3.13 shows the products covered by the initiated safeguard investigations on a 6- month basis. Initiations in the metals sector (the vast majority of which involve steel products) have been occupying a very large share for the last several periods, but the share in the most recent 6-month period dropped to 12.5%.

Chart 3.13 Initiations of safeguard investigations, by product

January - June 2018 July - December 2018

Stone/Plaster Textiles 25% 25%

Metals Metals 75% 75%

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January - June 2019 July - December 2019

Instruments 13%

Textiles Foodstuff 38% 13% Machinery Metals 50% 50%

Metals 13%

Chemicals 25%

Note: Values are rounded.

Source: WTO Secretariat.

3.49. Up until 15 May 2020, there has been no safeguard action notified that referred to the COVID-19 pandemic.

3.3 Sanitary and Phytosanitary (SPS) Measures20

3.50. The Section below covers SPS transparency-related matters, including STCs discussed in SPS Committee meetings, for the period 1 October 2019 to 31 March 2020. In addition, new SPS measures taken in response to the COVID-19 pandemic are reported in a separate sub-section covering the period from 1 February to 30 April 2020.

SPS activities/developments (1 October 2019-31 March 2020)

3.51. Under the SPS Agreement, WTO Members are obliged to provide an advance notification of intention to introduce new or modified SPS measures21, or to notify immediately when emergency measures are imposed. The main objective of complying with the SPS notification obligations is to inform other Members about new or modified regulations that may significantly affect trade. Therefore, an increase in the number of notifications does not automatically imply greater protectionism but can be due to enhanced transparency and/or a greater number of legitimate health-protection measures.

3.52. G20 economies rank amongst the main "notifiers" of SPS measures, accounting for 66% of total regular notifications (including addenda), and 35% of emergency notifications, submitted to the WTO from 1 January 1995 until 31 March 2020. For the current reporting period, from 1 October 2019 to 31 March 2020, Brazil, Canada, China, European Union, and United States submitted the most notifications to the WTO, accounting for 72% of all the notifications submitted by G20 economies in that period.

20 Information presented in this section was retrieved from the SPS Information Management System (SPS IMS: http://spsims.wto.org). For more information see also annual reports G/SPS/GEN/804/Rev.12 and G/SPS/GEN/204/Rev.20. 21 Transparency obligations are contained in Article 7 and Annex B of the SPS Agreement. Annex B requires that Members notify measures whose content is not substantially the same as that of an international standard, guideline or recommendation, and when the measure may have a significant effect on trade. However, the Recommended Procedures for Implementing the Transparency Provisions of the SPS Agreement, last updated in 2018 (WTO document G/SPS/7/Rev.4, 4 June 2018), recommend that Members also notify measures which are based on the relevant international standards, and provide a broad interpretation of effects on trade.

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3.53. Many G20 economies are following the recommendation to notify SPS measures even when these are based on a relevant international standard, thereby substantially increasing the transparency regarding these measures. Of the 281 regular notifications (excluding addenda) submitted by G20 economies during the current review period, 51% indicated that an international standard, guideline or recommendation was relevant to the notified measure, out of which 73% referred to Codex, 17% to IPPC and 10% to OIE (Chart 3.14). Furthermore, the notification formats include an entry asking whether the notified regulation conforms with the relevant international standard. Of the regular notifications that identified a relevant international standard, 46% indicated that the measure was in conformity with, or substantially the same as, the existing international standard, guideline or recommendation. In this context, Codex was the relevant international standard-setting body identified in the remaining 54%, which did not indicate that the measure was in conformity with the existing international standard. Regarding emergency notifications for the current reporting period, 85% of the emergency measures notified by G20 members indicated conformity with a relevant international standard, guideline or recommendation, this being an OIE animal health standard in many cases.

Chart 3.14 Regular SPS notifications (excluding addenda) and international standards

Codex Relevant 73% None international 49% standard 51%

OIE 10%

IPPC 17%

Note: Codex Alimentarius (Codex), World Organisation for Animal Health (OIE) and International Plant Protection Convention (IPPC). Source: WTO Secretariat .

3.54. The objective most frequently identified in the SPS measures notified by G20 economies 22 during the review period was food safety, accounting for 59% of the notifications. Food safety is a particularly important objective in the G20 members' notifications, as the majority of notified measures are related to maximum residue limits (MRLs), food additives or pesticides, and in many notifications several of these keywords were identified.

3.55. Measures maintained by G20 economies are often discussed in the SPS Committee. Moreover, the top ten WTO Members maintaining the most measures subject to an STC are all G20 economies. The STCs raised in the SPS Committee on measures maintained by G20 economies account for 73% of all STCs raised to date.

3.56. Out of 17 STCs raised or discussed in the SPS Committee meeting of 7-8 November 201923, 14 related to measures maintained by G20 economies.24 Three were raised for the first time (Table 3.14), and 11 had been discussed in previous Committee meetings. Of these 11, 3 addressed persistent problems that have been discussed 10, 15 and 37 times (Table 3.15).

22 The objective of an SPS measure falls under one or more of the following categories: (i) food safety, (ii) animal health, (iii) plant protection, (iv) protect humans from animal/plant pest or disease, and (v) protect territory from other damages from pests. Members are required to identify the purpose of the measure in their notifications. It is not uncommon for more than one objective to be identified for a measure. 23 WTO document G/SPS/R/97/Rev.1. 24 The 19-20 March 2020 SPS Committee meeting was suspended due to the COVID-19 pandemic (JOB/SPS/5/Rev.1/Corr.1).

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Table 3.14 New STCs in relation to measures maintained by G20 members raised in the November 2019 SPS Committee meeting

Members Members Members Primary STC Document title maintaining raising the supporting Date raised objective the measure concern the concern 467 EU sanitary European Union Indonesia 07/11/2019 Other requirement for concerns importation of hoof and horn 468 The Russian Russian Indonesia Colombia; 07/11/2019 Food safety Federation's Federation Malaysia maximum limit of 3- monochloropropa nediol (3MCPD) and glycidyl ester (GE) in palm oil products 469 EU Regulation on European Union Israel Canada; Kenya; 07/11/2019 Plant health high risk plants United States (Regulation (EU) 2016/2031)

Source: WTO Secretariat.

Table 3.15 Previously-raised STCs in relation to measures maintained by G20 members discussed in the November 2019 SPS Committee meeting

Members Members Members Times First date Primary STC Document title maintaining raising the supporting the subsequently raised objective the measure concern concern raised 193 General import Certain European Canada; 01/06/2004 Animal 37 restrictions due to Members Union; United Switzerland; health Bovine Spongiform States Uruguay Encephalopathy (BSE) 382 European Union European Argentina; Australia; 25/03/2014 Food safety 15 legislation on Union China; Benin; Brazil; endocrine disruptors Ecuador; Burkina Faso; Guatemala; Burundi; India; Canada; Central Panama; African Paraguay; Republic; Chile; United States Colombia; Costa Rica; Dominican Republic; Egypt; El Salvador; The Gambia; Ghana; Guinea; Honduras; Indonesia; Jamaica; Kenya; Korea, Republic of; Madagascar; Malaysia; Mexico; New Zealand; Nigeria; Pakistan; Peru; Philippines; Senegal; Sierra Leone; South Africa; Chinese Taipei; Thailand; Togo; Uruguay; Viet Nam; Zambia 386 Measures on imports Mexico Nigeria; Burkina Faso 26/03/2015 Plant health 2 of hibiscus flowers Senegal 406 China's import China European 16/03/2016 Animal 10 restrictions due to Union; United health highly pathogenic States avian influenza 431 South Africa's import South Africa European 02/11/2017 Animal 6 restrictions on Union health

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Members Members Members Times First date Primary STC Document title maintaining raising the supporting the subsequently raised objective the measure concern concern raised poultry due to highly pathogenic avian influenza 439 US import United States European 01/03/2018 Plant health 5 restrictions on Union apples and pears 441 Indonesia's approval Indonesia European Brazil 12/07/2018 Other 4 procedures for Union concerns animal and plant products 447 New EU definition of European China 12/07/2018 Food safety 4 the fungicide folpet Union 448 EU MRLs for European Colombia; Argentina; 01/11/2018 Food safety 3 buprofezin, Union Costa Rica; Brazil; Canada; chlorothalonil, Côte d'Ivoire; Chile; diflubenzuron, Ecuador; Dominican ethoxysulfuron, Guatemala; Republic; El glufosinate, imazalil, India; Salvador; ioxynil, iprodione, Panama; Honduras; molinate, Paraguay; Nicaragua; picoxystrobin and United States Peru; Turkey; tepraloxydim Uruguay 459 New EU MRLs for European China Paraguay 18/07/2019 Food safety 1 lambda-cyhalothrin Union 461 Turkey's FMD- Turkey Argentina 18/07/2019 Animal 1 related import health restrictions on live cattle

Source: WTO Secretariat.

3.57. Out of the 14 STCs discussed in the review period, five related to measures implemented by G20 economies on food safety, four on animal health, three on plant health, and two related to other types of concerns (one concern regarding delays in approval procedures and another concern regarding lack of transparency in such procedures for the importation of animal products). Discussions among Members in the SPS Committee continued to be multifaceted and dynamic.

COVID-19 related SPS measures (1 February – 15 May 2020)

3.58. The SPS Agreement requires Members to base SPS-related trade measures on international standards, guidelines and recommendations, specifically those developed by the FAO/WHO Codex Alimentarius Commission (Codex) for food safety; the World Organisation for Animal Health (OIE) for animal health and zoonoses; and the International Plant Protection Convention (IPPC) for plant health. The three standard-setting bodies and the WHO are monitoring the COVID-19 situation, and, so far, have not recommended any trade restrictions. In the absence of relevant international standards, SPS measures must be based on a risk assessment. However, it may take some time before sufficient scientific evidence becomes available. In the wake of the pandemic, some Members felt they had to act quickly to ensure health protection. Under the SPS Agreement, Members have the right to adopt provisional measures based on the available information. As more scientific evidence emerges and a risk assessment can be carried out, the measures imposed must be reviewed within a reasonable period of time.

3.59. From 1 February until 15 May 2020, 19 WTO Members submitted a total of 28 notifications and communications related to measures taken in the wake of the COVID-19 pandemic. Besides, 13 WTO Members, including G20 economies, submitted one communication (GEN document) requesting for the suspension of the processes and entry into force of reductions of maximum residue limits (MRLs) for plant protection products in light of the COVID-19 pandemic. Of the 28 notifications and communications, 15 were submitted by 10 G20 economies. Seven measures were notified as regular notifications (including one addendum25), 5 measures26 were notified as emergency measures and two measures were submitted through a GEN document. Submitted documents are displayed by G20 economies in Chart 3.15 and by month in Chart 3.16.

25 Addendum to a 2019 regular notification to extend final date for comments due to the COVID-19 pandemic. 26 A subsequent addendum was notified to withdraw one of the five emergency measures.

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Chart 3.15 Number of SPS notifications (regular, emergency and addenda) and GEN documents related to COVID -19 by G20 economies

0 Australia Brazil European Indonesia Japan Russian South Unit ed Argentina Mexico Several Union Federation Africa States Members

Regular Add Reg Emergency Add Emr GEN documents

Source: WTO Secretariat.

Chart 3.16 Number of SPS notifications (regular, emergency and addenda) and GEN documents related to COVID-19 by month

0 February March April May

Regular (including Add) Emergency (including Add) GEN documents

Source: WTO Secretariat.

3.60. Initially, these measures mainly related to restrictions on animal imports and/or transit from affected areas (some of these measures were subsequently lifted) and increased certification requirements. Since the beginning of April, most notifications and communications submitted relate to measures taken to facilitate trade by allowing temporary flexibility for control authorities to use electronically certificates for checks. Of the 15 notifications and communications submitted by G20 economies, two thirds were measures considered as trade facilitating.

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Box 3.4 Enhancing monitoring and transparency in SPS and TBT

Accessing relevant information on SPS or TBT product requirements in export markets can represent a significant challenge, in particular for SMEs. The WTO helps address this potential trade barrier through a combination of transparency requirements included in the SPS and TBT Agreements, and online tools that make information easily accessible: the SPS and TBT Information Management Systems (SPS/TBT IMSs) and ePing.

WTO Members are required to notify proposed SPS and TBT measures if they may significantly affect international trade. Each year, the WTO receives more than 3,500 such notifications. Publicly available online tools assist stakeholders in finding notifications of relevance to their trade: - SPS IMS: www.spsims.wto.org, - TBT IMS: www.tbtims.wto.org, and - ePing: www.epingalert.org. The SPS/TBT IMSs are search-platforms that, among other things, help identify SPS or TBT notifications by using parameters such as product, notifying Member or objective. ePing is an online alert system allowing users (governments, economic operators, and civil society) to receive daily or weekly email alerts about SPS and TBT notifications covering products and markets of interest to them. Timely access to notifications is crucial, given the 60-day period that should normally be provided for submitting comments on regulations, usually still in draft form. The ePing platform also facilitates dialogue among the public and private sectors to discuss and share information on notifications of concern, allowing stakeholders to address potential trade problems at an early stage of the regulatory lifecycle.

Source: WTO Secretariat.

3.4 Technical Barriers to Trade (TBT)27

Notifications submitted to the TBT Committee during the review period

3.61. The G20 economies are the most frequent users of the TBT Committee's transparency mechanisms. Together, they have submitted around 42% of all regular TBT notifications since

1995.28

3.62. Under the TBT Agreement, WTO Members are required to notify their intention to introduce new or modified TBT measures, or to notify adopted emergency measures immediately. The principal objective of complying with the TBT notification obligations is to inform other Members about new or changed regulations that may significantly affect trade.29 As a result, an increased number of notifications does not necessarily imply greater use of trade-restrictive measures. Rather, TBT notification obligations are meant to promote enhanced transparency regarding measures taken to address legitimate policy objectives, e.g. the protection of human, animal or plant life or health, or the environment.30

27 For the TBT Section, the review period covers 1 October 2019 to 15 May 2020. 28 Since 1995, around 28,679 new (regular) notifications of TBT measures have been submitted by WTO Members, around 11,982 of which are (42%) by G20 economies. Overall, around 38,023 new (regular) and follow-up (revisions, addenda, etc.) notifications of TBT measures have been submitted by WTO Members since 1995, around 17,215 of which (45%) were notified by G20 economies. 29 Under the TBT Agreement, WTO Members are not required to notify all proposed TBT measures (technical regulations or conformity assessment procedures). Rather, as a minimum, they are only required to notify those measures that may have a "significant effect on trade" of other Members and are not "in accordance with" any pre-existing "relevant international standards" (in the case of technical regulations), or any "relevant guides or recommendations issued by an international standardizing body" (in the case of conformity assessment procedures). However, the TBT Committee, in its Sixth Triennial Review, encouraged Members, "for the purpose of enhancing predictability and transparency in situations where it is difficult to establish or foresee whether a draft technical regulation or conformity assessment procedure may have a 'significant effect on trade of other Members', to notify such measures." This recommendation was reiterated by the TBT Committee at its Eighth, and last, Triennial Review (November 2018). 30 TBT Agreement obligations are also subject to 25 separate technical assistance and special and differential treatment (S&D) provisions, conferring developing-country Members, and LDC Members in particular, with certain flexibilities. The TBT Agreement contains more S&D provisions than any other WTO agreement apart from the GATT 1994. For more information see WT/CMTD/W/239 (October 2018), Section 2.5 (TBT), and also comparative table in pages 5-6.

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3.63. From 1 October 2019 to 15 May 2020 (the "review period"), G20 economies submitted 464 new regular notifications of TBT measures31 out of 1,329 by all WTO Members (around 35%). The top-five notifying G20 economies – covering around 70% of all G20 notifications – were Brazil (91), the United States (90), China (54), the European Union (52)32 and India (39). Of these 464 new regular TBT notifications, the majority indicated the protection of human health or safety as the main objective,33 including, as further explained below, various measures related to the COVID-19 pandemic. The remaining notifications related to consumer information, labelling, prevention of deceptive practices and consumer protection, and quality requirements.

3.64. G20 economies notified 336 (about 34%) "follow-up notifications"34 out of 989 submitted by all WTO Members during the review period. The continuing and frequent use by Members of this type of notification is a positive development, as it increases transparency and predictability across the measures' regulatory lifecycle.

Measures discussed in the TBT Committee (STCs)

3.65. WTO Members use the TBT Committee as a forum for discussing trade issues related to specific TBT measures (technical regulations, standards or conformity assessment procedures) maintained by other Members. These STCs normally relate to proposed draft measures notified to the TBT Committee or to the implementation of existing measures. Issues can range from simple requests for additional information and clarification to questions on the consistency of measures with TBT Agreement disciplines.

3.66. A total of 198 (45 new and 153 previously-raised) STCs were discussed during the three Committee meetings that fell within the review period: 62 STCs (12 new and 50 previously-raised) were discussed at the November 2019 meeting, 64 STCs (12 new and 52 previously-raised) at the February 2020 meeting and 72 STCs (21 new and 51 previously-raised) at the May 2020 meeting.

3.67. As depicted in Table 3.16, more than half (32 out of 45) of the new STCs discussed in the period concerned measures maintained by G20 economies.

Table 3.16 New STCs concerning G20 measures raised in the TBT Committee meetings of November 2019, February 2020 and May 2020

New STCs concerning G20 measures European Union: Revised Draft EU Regulation on Ecological Design Requirements for External Power Supply (ID 596) (raised by China) Brazil: Ministry of Agriculture, Livestock and Food Supply – MAPA Ordinance 79, of 13 May 2019 establishing a public consultation to amend the Technical Regulation 67, 05 November 2018 regarding the procedures and requirements for export and import certification of beverages, fermented acetic, wines and wine and grapes derived products (ID 597) (raised by United States, South Africa and New Zealand) India: Air Conditioner and its related Parts (Quality Control) Order, 2018 (ID 598) (raised by the Republic of Korea and United States) United States: Modernization of the Labelling and Advertising Regulations for Wine, Distilled Spirits, and Malt Beverages (ID 601) (raised by the European Union) Turkey: Draft Amendment of the Regulation on Cosmetics (ID 603) (raised by the United States) Brazil: Ordinance 259, on 27 May 2019, which makes corrections and updates to the Conformity Assessment Requirements for Medical Devices Subject to the Health Surveillance System in Ordinance 54,

31 Viewed at: http://tbtims.wto.org. These numbers only concern "regular" notifications (in which the original draft measure is submitted) and do not include "follow-up" notifications. 32 Forty EU-wide regular notifications plus 12 notifications from certain individual EU member States: the Czech Republic (4); Sweden (3); Spain (2); Lithuania (2) and France (1). 33 A TBT measure may pursue a variety of legitimate objectives, although historically the majority fall under one of the following categories: the protection of human, animal or plant life or health, or the environment. Members are required to identify the purpose of the measure in their notifications. It is not uncommon that more than one objective is identified for a measure. 34 "Follow-up" notifications can take the form of "addenda", "corrigenda", or "supplements". They can also be in the form of "revisions" when the original measure has been substantially re-drafted prior to its adoption or entry into force. "Follow-up" notifications are meant to indicate any pertinent new information available after the original measure was notified. Such new information may include, for instance: the extension of a notification comment period (addenda); the withdrawal or revocation of a measure (addenda); when a measure is substantially redrafted prior to adoption or entry into force (revision); or when the adopted final text of a measure becomes available (addenda). See G/TBT/35/Rev.1 for further information on different types of TBT notifications.

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New STCs concerning G20 measures from 1 February 2016 (ID 604) (raised by the United States) Kingdom of Saudi Arabia: Electrical Clothes Dryers Energy Performance Requirements and Labelling (ID 605) (raised by the Republic of Korea) Republic of Korea: Ballast Water Management Act (ID 606) (raised by the European Union) Mexico: Draft Amendment to Mexican Official Standard NOM-051-SCFI/SSA1-2010: General specifications for the labelling of pre-packed food and non-alcoholic beverages (ID 608) (raised by European Union, United States, Switzerland, Costa Rica and Guatemala) United States: Act to amend the environmental conservation law, in relation to regulation of toxic chemicals in children's products (State of New York - Senate Bill 501B/Assembly Bill 6296A) (ID 610) (raised by the European Union) China: Draft Administrative Measures for Registration of Overseas Producers of Imported Foods (ID 611) (raised by Mexico, the Republic of Korea, Switzerland, United States, Japan, European Union and Chinese Taipei) Russian Federation: Law No. 425 - on Amending Article 4 of Russian Federation Law "On Protecting Consumer Rights" (ID 612) (raised by United States, Japan and European Union) India: Draft Food Safety and Standards (Labelling and Display) Regulations (ID 613) (raised by United States and European Union) European Union: Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic production and labelling of organic products (ID 614) (raised by the Dominican Republic, Canada, Panama, Paraguay, Peru, Ecuador, Colombia and Chile) Kingdom of Saudi Arabia: Saber Conformity Assessment Online Platform / Saleem Product Safety Program (ID 615) (raised by the European Union) France: Mandatory Labelling of SAR Radio Equipment (ID 617) (raised by China) Kingdom of Saudi Arabia: Electrical Clothes Washing Machines – Energy and Water performance Requirements and labelling (ID 619) (raised by the Republic of Korea) India: Draft Chemicals (Management and Safety) Rules, 2020 (ID 622) (raised by the United States) Russian Federation; Kazakhstan; Kyrgyz Republic; Armenia: Requirements for energy efficiency of energy related devices (ID 624) (raised by the Republic of Korea) United States: Guidance on Federal Conformity Assessment Activities (ID 625) (raised by the European Union) European Union: Revision of the Batteries Directive (ID 626) (raised by Japan) European Union: Non-renewal of the approval of the active substance mancozeb (ID 627) (raised by Colombia, Brazil, Costa Rica, United States, Ecuador, Paraguay, Guatemala, Indonesia, Nicaragua) European Union: Draft Commission Regulation amending Annex III to Regulation (EC) No 1925/2006 of the European Parliament and of the Council as regards botanical species containing hydroxyanthracene derivatives (ID 628) (raised by Mexico) India: Quality Control Orders for Chemical and Petrochemical Substances (ID 630) (raised by Canada, European Union, Chinese Taipei) India: Food Safety and Standards Act, 2006 dated 27 January 2020 regarding operationalization of Food Safety and Standards (Food Products Standards and Food Additives) Amendment Regulations, 2020 (ID 631) (raised by the United States) India: Toys (Quality Control) Order, 2020 (IND/131); Amendment in Policy Condition No. 2(iii) to Chapter 95 of ITC (HS), 2017- Schedule-I (Import Policy) (IND/143) (ID 632) (raised by United States, European Union and Canada) India: FSSAI’s Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 and the new implementing veterinary certificate for dairy products (ID 633) (raised by the European Union) European Union: EU Commission Regulation (EU) 2019/2013 for Energy Labelling of Electronic Displays (ID 634) (raised by China) Kingdom of Saudi Arabia: SASO 2663 Air conditioner Minimum Energy Performance, labelling and testing requirements for low capacity window type and single-slit, and related certifications (ID 635) (raised by China) Australia: Maturation requirements for imported alcohol (ID 636) (raised by Brazil) Russian Federation: Regulation on safety of alcoholic beverages, Technical Regulation TR EAEU 047/2018 (ID 637) (raised by Mexico) India: Expansion of BIS Certification to plugs, socket outlets and power cords (ID 639) (raised by China)

Source: WTO Secretariat.

3.68. The number of times that an STC is raised may be related to the importance Members attach to the concern or may provide insight into whether progress was made in addressing concerns. STCs which are raised at only one or two meetings may represent concerns for which some progress was found. On the other hand, longstanding STCs raised at five or more meetings may represent concerns for which less progress has been made. As mentioned above, STCs frequently discussed at subsequent meetings as previously-raised STCs, usually represent more serious concerns. From 1995 to 2019, for instance, the majority of STCs (56%) have been raised at one or two Committee meetings, while 25% were raised 3 to 5 times. Only 19% STCs were raised more than 5 times (Chart 3.17).

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Chart 3.17 STCs raised in the TBT Committee, 1995-19

(Number of times raised)

>5 Meetings 19%

1-2 Meetings 56% 3-5 Meetings 25%

Source: WTO Secretariat.

3.69. During the three Committee meetings covered by the review period (November 2019, February 2020 and May 2020), seven "persistent" STCs – i.e. those previously-raised STCs raised more than 16 times in Committee meetings – were discussed (Table 3.17). All of these "persistent" STCs concerned measures by G20 economies.

Table 3.17 "Persistent" STCs raised between 1 October 2019 and 15 May 2020

Persistent STCs India: New Telecommunications related Rules (Department of Telecommunications, No. 842-725/2005- VAS/Vol.III (3 December 2009); No. 10-15/2009-AS-III/193 (18 March 2010); and Nos. 10-15/2009- AS.III/Vol.II/(Pt.)/(25-29) (28 July 2010); Department of Telecommunications, No. 10-15/2009- AS.III/Vol.II/(Pt.)/(30) (28 July 2010) and accompanying template, "Security and Business Continuity Agreement") (ID 274) – raised 29 times since 2010 China: Requirements for information security products, including, inter alia, the Office of State Commercial Cryptography Administration (OSCCA) 1999 Regulation on commercial encryption products and its on-going revision and the Multi-Level Protection Scheme (MLPS) (ID 294) – raised 28 times since 2011 Russian Federation: Draft Technical Regulation on Alcohol Drinks Safety (published on 24 October 2011) (ID 332) – raised 25 times since 2012 European Union: Draft Implementing Regulations amending Regulation (EC) No. 607/2009 laying down detailed rules for the application of Council Regulation (EC) No 479/2008 as regards protected designations of origin and geographical indications, traditional terms, labelling and presentation of certain wine sector products (ID 345) – raised 23 times since 2012 India: India - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012 (ID 367) – raised 22 times since 2013 European Union: Hazard-based approach to plant protection products and setting of import tolerances (ID 393) – raised 21 times since 2013 China: Regulations for the Supervision and Administration of Medical Devices (Order No. 650 of the State Council) (ID 428) – raised 18 times since 2014

Source: WTO Secretariat.

COVID-19 related TBT Notifications during the review period35

3.70. During the review period, WTO Members submitted 53 TBT notifications/communications on standards and regulations in response specifically to the COVID-19 pandemic.36 Most of the notifications were submitted under the emergency/urgent notification provisions of the TBT

35 For further information see also the Information Note "Standards, Regulations and COVID-19 – what actions taken by WTO Members?" (WTO, 2020). 36 TBT Notifications are classified as COVID-19-related if they contain the terms "coronavirus", "COVID", "SARS-COV-2" and "nCoV". This includes not only regular notifications but also eight follow-up notifications (in the form of revisions or addenda to previous regular notifications).

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Agreement.37 Under these provisions, WTO Members can adopt measures directly and immediately notify them to the WTO, without providing the usual 60-day comment period (or six-month transition period prior to entry into force).

3.71. As of 15 May 2020, G20 economies had submitted 20 COVID-19-related TBT notifications out of 53 by all WTO Members - around 38% (Chart 3.18). The notifying G20 economies include Brazil (14), Indonesia (3), United States (2) and Canada (1). Around half of the total notified measures were reported as temporary, often applying for a period of six-months.

3.72. TBT notifications in relation to the COVID-19 pandemic cover a wide range of products including personal protective equipment (PPE), medical equipment, medical supplies, medicines, food and general coverage (Chart 3.19).38 39

Chart 3.18 COVID-19-related TBT Notifications by WTO Member

16 15

14 14

8 7 19 related TBT notifications TBT 19 related -

4 3 3

Number of C OVID 2 2 2 1 1 1 1 1 1 1

Source: WTO Secretariat.

37 The Agreement on Technical Barriers to Trade (TBT Agreement), Articles 2.10, 2.12, 5.7, and 5.9. 38 With respect to medical goods, this report adopts the product categories developed in the Information Note “Trade in Medical Goods in the Context of Tackling COIVD-19" (WTO, 2020), page 2 and Annex 1. 39 The category of "General" includes notifications without a specific product scope. The "Other" category includes, for instance, clothing, textiles and tobacco products.

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Chart 3.19 Product coverage of all COVID-19 related TBT Notifications (as of 15 May 2020)

25 25

15 19 related TBT notifications TBT 19 related - 11

10 8

6 6 Number of C OVID 5 4 4

0 PPE Medical Equipment Medical Supplies Medicines F ood Oth er General (Pharmaceuticals)

Source: WTO Secretariat.

3.73. The notified measures broadly fall into three main categories: streamlining certification procedures; ensuring the safety of medical goods; and making food available by relaxing technical regulations.

TBT Committee discussions during the COVID-19 pandemic

3.74. The TBT Committee continued its regular work on Specific Trade Concerns ("STCs") during the COVID-19 pandemic. The Committee held, on an exceptional basis, its 13-14 May 2020 meeting by a written procedure made possible by the new online "eAgenda platform". Members exchanged statements on 72 STCs, 21 of which were new. Using the eAgenda platform facilitated broad participation.

3.75. Although none of the STCs discussed during the written procedure related to COVID-19 measures (see above), Members made various points related to COVID-19 in their statements. For instance, some Members mentioned the challenges faced by developing countries, in particular, in addressing the pandemic due to the lack of financial and health resources - a challenge exacerbated by the implementation of measures on agricultural products which create additional burdens in international trade.

3.76. Several Members called for extended transition periods, as well as flexibility in production and labelling requirements in order to allow Members to maintain critical resources needed during the crisis, which would otherwise be diverted to comply with such additional requirements. WTO Members also cited the global health emergency when announcing logistical issues resulting in implementation delays of certain measures.

3.77. Finally, Members urged the need for international cooperation in all areas to face the COVID-19 pandemic, including by the promotion of measures that facilitate trade rather than create additional obstacles to trade which would hinder the process of global economic recovery.

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3.5 Trade Concerns Raised in Other WTO Bodies40

3.78. During the review period, several trade issues and concerns raised by Members in formal meetings of various WTO bodies involved G20 economies. This Section provides a factual overview of such concerns raised between mid-October 2019 and mid-May 2020.41 The trade concerns covered in this Section have neither the status nor the procedural framework of the STCs raised in the SPS and TBT Committees. Nevertheless, they provide an up-to-date insight into which trade issues are being discussed at the WTO and, as such, add important transparency. This Section does not reproduce the full substantive description of the trade concerns outlined by WTO Members regarding measures implemented by G20 economies, but rather provides a reference to the formal meeting(s) where they featured. The list of concerns and issues mentioned in this Section is not exhaustive and is limited to measures implemented by G20 economies.

3.79. At the Council for Trade in Goods (CTG) meeting, on 14 and 15 November 201942, new concerns were raised on the use by the European Union of trade remedy instruments and, in particular, the amendments introduced by EU Regulations 2017/2321 and 2018/825 as to the calculation of the "normal value" of products subject to anti-dumping investigations and the right of the EU not to apply the "lesser duty rule" in calculating the amount of anti-dumping duty (raised by Russian Federation).

3.80. At the same meeting, concerns were again raised on: (i) the European Union's proposed modification of EU TRQ commitments in response to Brexit (raised by Australia, Brazil, Canada, Chile, China, New Zealand, Russian Federation, United States, and Uruguay); (ii) the EU enlargement to include Croatia (raised by the Russian Federation); (iii) the EU implementation of non-tariff barriers on agricultural products (raised by Argentina, Australia, Brazil, Canada, Colombia, Costa Rica, Côte d'Ivoire, Dominican Republic, Ecuador, Guatemala, Honduras, Jamaica, Malaysia, Nicaragua, Panama, Paraguay, Peru, United States, and Uruguay); (iv) a selective tax by the Kingdom of Saudi Arabia on certain imported products (raised by European Union, Switzerland, and United States); (v) Indonesia's import and export restricting policies and practices (raised by European Union, Japan, Chinese Taipei, and United States); (vi) India's customs duties on ICT products (raised by Canada and United States); and (vii) European Union's quality schemes for agricultural products and foodstuffs – the registration of certain terms of cheese as geographical indications (raised by Argentina, United States, and Uruguay).

3.81. Additional concerns were repeated on: (viii) China's measures restricting the import of scrap materials (raised by the United States); (ix) India's quantitative restrictions on imports of certain pulses (raised by Australia, Canada, European Union, Russian Federation, and United States); (x) China's customs duties on certain integrated circuits (raised by European Union, Japan, and Chinese Taipei); (xi) EU draft implementing regulations regarding protected designations of origin and geographical indications, traditional terms, labelling and presentation of certain wine sector products (raised by the United States); (xii) China's new export control law in draft (raised by Japan); (xiii) US proposal on communication equipment or services released by the FCC (raised by China); (xiv) Australia's discriminatory market access prohibition on 5G equipment (raised by China); (xv) US measures regarding market access prohibition for ICT products (raised by China); (xvi) US export control measures for ICT products (raised by China); (xvii) EU Regulation EC No. 1272/2008 (CLP Regulation) (raised by Russian Federation and United States); (xviii) US measures on aviation security equipment (raised by China); (xix) the Russian Federation trade restricting practices (raised by European Union and United States); (xx) EU amendments to the Directive 2009/28/EC, Renewable Energy Directive (raised by Colombia and Malaysia); and (xxi) EU Medical Device Regulation and In Vitro Diagnostic Medical Devices Regulation (raised by the United States).

40 This Section does not include the SPS and TBT Committees (covered separately). Issues raised in this Section may subsequently have become the subject of a dispute. 41 Members and Observers are encouraged to communicate to the Trade Monitoring Section of the WTO's Trade Policy Review Division trade issues which they have raised in WTO bodies and which they believe are relevant to the monitoring exercise. 42 WTO document G/C/M/136.

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3.82. At the 11 November 201943 meeting of the Committee on Market Access (CMA)44 new and persistent trade concerns were raised as per Table 3.18.

Table 3.18 Concerns raised at the Committee on Market Access

Measure implemented by Raised by China - Customs Duties on Certain Integrated Circuits European Union and Chinese Taipei

European Union (Croatia) – Regulation of Import and Russian Federation Sale of Certain Oil Products Enlargement of the European Union to include Croatia Russian Federation - Negotiations under Article XXIV:6 of the GATT 1994

European Union – Renegotiation of Tariff Rate Quotas Russian Federation under Article XXVIII of the GATT 1994 India – Customs Duties on Telecommunication and China and the United States Other Products

India – Quantitative Restrictions on Certain Pulses Australia; Canada; European Union; Russian Federation; United States

Indonesia - Customs Duties on Certain United States Telecommunication Products

Kingdom of Saudi Arabia – Digital Stamp Tax Switzerland Russian Federation – Quantitative Restrictions on European Union Exports of Scrap and Waste of Ferrous Metals United Kingdom - Renegotiation of Tariff Rate Quotas Russian Federation under Article XXVIII of the GATT 1994

Source WTO Secretariat.

3.83. At the same meeting, Members also raised concerns in the context of the review of notifications under the 2012 Decision on notification procedures for quantitative restrictions.45

3.84. At the meeting of the Committee on Import Licensing (CIL) on 4 October 201946, persistent trade concerns were raised on: (i) Indonesia's import licensing regime for cell phones, handheld computers and tablets (raised by the United States); (ii) India's import licensing requirements for boric acid (raised by the United States); (iii) India's quantitative restrictions on certain pulses (raised by Australia, Canada and echoed by United States); (iv) China's importation of waste and changes to import licensing for certain recoverable materials (raised by European Union and United States); and (v) Brazil's import licensing on industrial nitrocellulose (raised by the European Union).

3.85. At the meetings of the Committee on Agriculture (CoA) 65% of the questions raised targeted G20 economies’ policies on: individual notifications (82 questions), Specific Implementation Matters (SIMs) under Article 18.6 (102 questions on 57 implementation-related matters) and overdue notifications (11 questions). These questions were raised in the context of the 92nd and 93rd CoA meetings.47 The questions already raised for the 93rd meeting were included in Section 3.6 of the Report for reference only, as Members may still add or remove questions until the actual convening of the 93rd CoA meeting.

43 WTO document G/MA/M/71 (forthcoming). 44 The Committee on Market Access was meant to have another meeting on 2 April 2020, but it had to be postponed due to the COVID-19 pandemic. 45 WTO document G/L/59/Rev.1. 46 WTO document G/LIC/M/50. 47 The content of the questions raised under the review process for the 92nd and 93rd CoA meeting are available in WTO documents G/AG/W/202, 17 October 2019 and G/AG/W/205, 13 March 2020, respectively. The questions, responses and follow-up comments are available through the Q&A section of the Agriculture Information Management System. Viewed at: http://agims.wto.org/.

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3.86. At the meeting of the Committee on Anti-Dumping Practices (ADP)48 on 20 November 2019, concerns were raised as per Table 3.19.

Table 3.19 Concerns raised on anti-dumping practices

Member(s) Measure implemented by raising the concern

Russian Federation Investigation on zinc plated or coated flat-rolled steel products Ukraine Measures on forged work-rolls Ukraine Brazil Measures on tyres for passenger cars Ukraine Canada Normal value review on certain carbon and alloy steel line pipes Korea, Republic of Final determination on certain hot-rolled steel plate Korea, Republic of Final determination on oil country tubular goods (OCTG) Korea, Republic of Investigation on certain OCTG Turkey China Investigation on phenol Korea, Republic of Final determination on methylisobutul ketone Korea, Republic of Final determination on styrene monomer Korea, Republic of Final determination on acrylonitrile butadiene rubber Korea, Republic of Preliminary determination on stainless billets, hot-rolled plates and coils Japan European Union Initiation of expiry review of measures on ammonium nitrate Russian Federation Measures on mixtures of urea and ammonium nitrate Russian Federation India Investigation on coated/plated tin mill flat rolled steel products Japan Mexico Continued application of measures on cold-rolled sheets (since June Kazakhstan 1999) Turkey Measures on unbleached kraft liner paper Brazil United States Annual review of measures on OCTG Korea, Republic of Annual review of measures on circular welded non-alloy steel pipe Korea, Republic of Annual review on measures on welded line pipe Korea, Republic of Annual review on measures on heavy-walled rectangular welded carbon Korea, Republic of steel pipes and tubes Annual review on measures on large diameter welded pipe Korea, Republic of Annual review on measures on corrosion resistant steel Korea, Republic of

Source: WTO Secretariat.

3.87. Additional issues and concerns raised at the 20 November 2019 ADP meeting on: (i) the non-notification by some Members of their legislative status in the ADP Committee albeit doing so in the context of the TPRB forum (raised by the United States); (ii) the European Union's amendments to its Anti-Dumping regulation pertaining to the non-application of the lesser duty rule in case of the price distortions of raw materials in the exporting country as well as the European Union's use of cost adjustment methodology in its investigations (raised by the Russian Federation); (iii) the United States' application of adverse facts available and the determination of particular market situation in investigations (raised by Korea, Republic of); and (vi) Mexico's non- market economy methodologies applied in an anti-dumping investigation and in reviews pertaining to certain products from Kazakhstan (raised by Kazakhstan).

3.88. At the meeting of the Committee on Subsidies and Countervailing Measures49 on 19 November 2019 concerns were raised on China's certain alleged subsidy programmes in the steel sector (raised by European Union, United States).

3.89. Additional concerns were raised on: (i) the elimination of export subsidies by the Members that received extensions under Article 27.4 of the SCM Agreement; (ii) the low and declining level of compliance with the notification and transparency obligations in the SCM Agreement; (iii)

48 WTO document G/ADP/M/57. 49 WTO document G/SCM/M/111.

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requests for information pursuant to Article 25.8 and 25.9 (raised by the United States); (iv) subsidies and overcapacity (raised by Canada, European Union, Japan, and United States); (v) the implementation of paragraph 2 of the Ministerial Decision on Fisheries Subsidies (raised by Argentina, Australia, Canada, European Union, Iceland, Japan, Republic of Korea, New Zealand, Norway, Chinese Taipei, and United States).

3.90. At the meetings of the Trade-Related Investment Measures (TRIMs) Committee on 6 June and 13 November 201950 new or persistent issues were raised, as per Table 3.20:

Table 3.20 Concerns raised at the TRIMs Committee Measure implemented by Member(s) raising the concern Argentina Argentina – Act 27,263 on the development Mexico and strengthening regime of the Argentine autopartism51 China Local content provisions in cybersecurity United States measures (including provisions on insurance system informatization)52 Indonesia Comprehensive review of localization European Union, Japan, United States measures Local content requirements for pharmaceutical European Union, Japan, United States products and medical devices53 Russian Federation Measures implementing Russia's import European Union, United States substitution policy54 Measures to support the automotive industry United States to replace the automotive investment incentive programmes

Source: WTO Secretariat.

3.91. At the meeting of the Committee on Safeguards55, on 18 November 2019, concerns were raised on specific safeguard actions as per Table 3.21.

Table 3.21 Concerns raised at the Committee on Safeguards Measure implemented by Member(s) raising the concern Canada Investigation on certain steel products Japan Russian Federationa Investigation on certain flat-rolled steel Japan products European Union Investigation on certain steel products Japan; Korea, Republic of; Russian Federation; Switzerland; Turkey Kingdom of Saudi Arabiab Certain steel products European Union; Japan; Korea, Republic of; Norway; Switzerland; Ukraine

50 WTO documents G/TRIMS/M/46 and G/TRIMS/M/47. 51 WTO documents G/TRIMS/Q/ARG/1, 1 May 2017; G/TRIMS/Q/ARG/2, 22 May 2017; G/TRIMS/Q/ARG/3, 11 October 2017; G/TRIMS/Q/ARG/4, 5 February 2018; G/TRIMS/Q/ARG/5, 3 May 2018; G/TRIMS/Q/ARG/6, 7 June 2018; G/TRIMS/Q/ARG/7, 25 September 2018; G/TRIMS/Q/ARG/8, 22 October 2018; G/TRIMS/Q/ARG/9, 24 April 2019; G/TRIMS/Q/ARG/10, 28 October 2019. 52 WTO document G/TRIMS/Q/CHN/1, 3 June 2016. 53 WTO documents G/TRIMS/Q/IDN/3, 21 September 2018; G/TRIMS/Q/IDN/4, 28 February 2019; G/TRIMS/Q/IDN/5, 14 May 2019. 54 WTO documents G/TRIMS/Q/RUS/4, 26 May 2016; G/TRIMS/Q/RUS/5, 27 September 2016; G/TRIMS/Q/RUS/6, 27 April 2017; G/TRIMS/Q/RUS/8, 24 January 2018; G/TRIMS/Q/RUS/7, 8 November 2017 and G/TRIMS/Q/RUS/9, 22 March 2018. 55 WTO document G/SG/M/56.

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Measure implemented by Member(s) raising the concern India Investigation on single mode optical fibre Japan Investigation on phenol Japan; Korea, Republic of Indonesia Investigation on fabrics Chinese Taipei Investigation on yarn of synthetic and United States artificial staple fibres Turkey Investigation on yarn of nylon or other Chinese Taipei, European Union; United States polyamides United States Measures taken following Section 232 Turkey investigations

a Investigations are initiated at the level of the Eurasian Economic Union. b Investigations are initiated at the level of the GCC.

Source: WTO Secretariat.

3.92. At the meeting of Working Party on State Trade Enterprises (STEs) on 1 November 201956, trade concerns were raised on: (i) India’s decision not to identify certain entities as STEs in its 2018 and 2019 notifications (raised by United States and European Union); (ii) Brazil's notification of no STEs (raised by the United States); (iii) the continued non-notification of STEs by the Russian Federation (raised by United States, European Union and Ukraine); (iv) the continued non-notification of STEs by the United Arab Emirates (raised by United States and European Union); and (v) the low level of compliance with the notification obligations relating to STEs (raised by the United States).

3.93. At the meeting of the Council for Trade in Services (CTS) held on 30 October 2019, concerns were reiterated about cybersecurity measures by China (raised by Japan and United States).57

3.94. The above Section has outlined the numerous trade issues and concerns raised in the various WTO bodies between mid-October 2019 and mid-May 2020, on measures implemented by G20 economies. During the review period several meetings of WTO Committees and Councils were postponed as a result of the COVID-19 pandemic. Although fewer meetings took place during the review period several conclusions presented in previous Reports remain valid. For example, several trade concerns raised during the review period had already been raised in previous periods, indicating persistent and unresolved issues. Also, during the review period, some trade concerns were raised in more than one WTO body, suggesting that these concerns involve cross-cutting and technically complex issues. It suggests that WTO Members are continuing to use multiple platforms within the WTO committee structure to address various aspects of such concerns. Systemically, this is significant because of the increased transparency which it brings, but also because it demonstrates that Members are actively using the WTO Committees to engage trading partners on real or potential areas of trade friction. At the same time, however, the repetition and non-resolution of the same trade concerns and issues in various WTO bodies may also be a source of concern. The Secretariat will continue to closely monitor developments in this area.

3.6 Policy Developments in Agriculture

3.95. The Committee on Agriculture (CoA) provides a forum for Members to discuss matters related to agriculture trade, and to consult on matters relating to Members' implementation of commitments under the Agreement on Agriculture (AoA). The review work by the CoA is based on notifications Members make in relation to their commitments. There is also a provision in Article 18.6 of the AoA that allows Members to raise any matter relevant to the implementation of the commitments under the AoA.

56 WTO document G/STR/M/36. 57 WTO document S/C/M/141.

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3.96. During the period under review the CoA was scheduled to meet for the 92nd and 93rd time. While the 92nd meeting took place on 30-31 October 2019, the 93rd CoA meeting scheduled to take place on 24-25 March 2020 was postponed because of the COVID-19 pandemic. Although that meeting was postponed, Members, following Committee meeting procedures, submitted questions and concerns for the scheduled 93rd meeting.58 This Report covers the questions and concerns raised for the 93rd meeting for reference only, as Members may still add or remove questions until the actual convening of the 93rd CoA meeting.

3.97. Out of the 298 questions raised for the 92nd and 93rd CoA meetings59, 195 questions (65%) related to policies implemented by G20 members, including questions both on their individual notifications and on Specific Implementation Matters (SIMs) under Article 18.6. Most questions on G20 members' individual notifications were related to domestic support notifications (over 63%). More than half of the SIMs related to domestic support policies, 26% related to policies affecting market access and the remaining 16% to policies in the area of export competition and other types of policies.

3.98. In total, 12 G20 members received 102 questions on 57 SIMs under Article 18.6 for the 92nd (30-31 October 2019) and 93rd (postponed) CoA meetings.60 As can be seen in Chart 3.20, the annual average number of questions posed to G20 members under Article 18.6 has been on the rise since 2011 reaching an average of 44 questions in 2019. These numbers include questions that were repeated from one meeting to the next because responses were not provided within the relevant timeframes.

Chart 3.20 Average number of questions posed to G20 members on SIMs under Article 18.6, 1995-20 a

a 2020 data cover questions raised for the 93 rd CoA meeting scheduled to take place on 24 -25 March

2020 and postponed due to the COVID-19 pandemic. These questions are shown as reference only and may change up to the actual convening of the 93rd CoA meeting.

Source: WTO Secretariat.

58 WTO document WTO/AIR/AG/41 issued on 20 February 2020. 59 Under the review process of the CoA, Members may raise questions and concerns with respect to Members' individual notifications, and on Specific Implementation Matters under Article 18.6 (SIMs). These questions are to be raised at least 11 days in advance of the CoA meetings and the related responses are to be provided by the relevant Member(s) during the formal meetings of the CoA. 60 Brazil, Canada, China, European Union, India, Indonesia, Japan, Russian Federation, Kingdom of Saudi Arabia, Turkey, United Kingdom and United States.

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3.99. Out of the 57 SIMs raised in the CoA during the period under review, 33 were discussed for the first time. The remaining issues had been discussed at least once in previous Committee meetings in the context of matters raised under Article 18.6.

3.100. Domestic Support: 60% of the new SIMs raised related to domestic support policies aimed at producers of alcoholic beverages (Russian Federation's excise duties on wine and champagne), cereals (Turkey's Turkish Grain Board), corn (Japan's Corn policies and U.S. biofuels policies) and meat and live animals (China's state reserves programmes). Members also raised questions concerning domestic support policies by G20 economies with a wider scope, such as Brazil's subsidized loans, China's agricultural insurance, EU's European Court of Auditors report, Russian Federation's state programme for rural territories development and U.S. farm support. A number of questions sought to obtain additional information on policies targeting environmental or SPS- related objectives (EU's environmental policies, EU's production subsidies resulting from the implementation of SPS measures and EU's Eco schemes payments); other matters raised related to policies put in place as a response to the potential impact of new trade deals or increased tariffs implemented by other Members (China's exemptions to retaliatory tariffs, Japan's supplementary budget to address impact of new trade deal, EU's compensation to farmers to adjust to new trade deals and EU's planned policy measures in response to U.S. tariffs). Two SIMs related to information on U.S. domestic support policies and notification practices. Finally, one SIM raised sought an update from the United Kingdom regarding its agricultural policy resulting from Brexit.

3.101. Market Access: Around 24% of the SIMs raised related to measures that restricted, or had the potential to restrict, trade of agricultural products, including beef and pork (Japans beef special safeguard and pork safeguard). SIMs relating to more than one specific commodity were also raised (Canada's review of the TRQ system, EU's deforestation and forest degradation strategy and the Kingdom of Saudi Arabia's new system for issuing import licenses). Some matters were raised in relation to potential new trade agreements (China-US economic and trade agreement and Japan-US trade agreement).

3.102. Export Competition and other areas: A total of three SIMs sought clarification on policies that potentially subsidized exports of agricultural products (India's export subsidies/export credits, Russian Federation's export subsidies and China's state trading enterprises). There was two additional SIMs relating to general information on agricultural policies being implemented by the European Union (EU "From Farm to Fork" (F2F) strategy and EU's border adjustment mechanism for carbon emissions).

3.103. Table 3.22 lists the SIMs that were discussed for the first time during the two CoA meetings covered by the Report. The complete list of questions and answers can be accessed through the Agriculture Information Management System (AG IMS) by using the ID numbers provided in the table below.61

Table 3.22 SIM (Article 18.6) concerning G20 members - new issues

Number Specific Implementation Question Products of CoA Meetings ID number Matter (SIM) raised by questions United States - China-US Australia, 3 93 93078, 93080, Economic and Trade Canada, 93082 Agreement Ukraine Canada's review of the TRQ Australia, New Poultry, dairy, 3 92, 93 93045, 93046, system Zealand milk, milk 92088 powders, butter, cheese, other, eggs China - China-US Economic Australia, 2 93 93049, 93050 and Trade Agreement Canada EU's environmental policies New Zealand, 2 93 93057, 93059, Paraguay Turkey's Turkish Grain United States Cereals, wheat, 2 93 93019, 93021 Board (TMO) corn, rice, malt, coarse grains US farm support Canada, 2 92 92020, 92050 European Union

61 In the AG IMS (http://agims.wto.org/), select the function "Search Q&A Submitted Since 1995" and input the ID number of the question concerned.

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Number Specific Implementation Question Products of CoA Meetings ID number Matter (SIM) raised by questions Brazil's subsidized loans India 1 93 93044 China's exemptions to Canada 1 93 93052 retaliatory tariffs China's agricultural Canada 1 93 93051 insurance EU "From farm to fork" Colombia 1 93 93127 (F2F) strategy EU border adjustment Colombia 1 93 93143 mechanism for carbon emissions EU production subsidies Paraguay 1 93 93060 resulting from implementation of SPS measures India's export subsidies United States 1 93 93007 /export credits Japan - Japan-US Trade Canada 1 93 93071 Agreement Japan's supplementary Australia 1 93 93069 budget to address impact of new trade deal Japan's beef special Canada Bovine, swine 1 93 93070 safeguard (SSG) and pork safeguard (SG) Russian Federation's export European Union 1 93 93017 subsidies Kingdom of Saudi Arabia's Brazil 1 93 93074 new system for issuing import licences EU deforestation and forest Colombia 1 93 93128 degradation strategy US domestic support India 1 93 93085 policies and notifications United Kingdom's policy Canada 1 93 93077 update resulted from Brexit United States - Japan-US Canada 1 93 93081 Trade Agreement China's state trading United States Seeds 1 92 92004 enterprises China's state reserves Canada Meat, bovine, 1 92 92047 programmes swine, sheep and goat, poultry, horses, other EU compensation for Australia 1 92 92089 farmers to adjust to new trade deals EU planned policy measures Australia 1 92 92090 against U.S. tariffs EU European Court of Brazil 1 92 92093 Auditors report EU's Eco schemes payments Brazil 1 92 92092 Japan's corn policies Australia Corn 1 92 92097 Russian Federation's state European Union 1 92 92017 programme for rural territories development Russian Federation's excise European Union Alcoholic 1 92 92121 duties on wine and champagne US biofuel policies Ukraine Corn, Seeds 1 92 92103 US practices of Dispute China 1 92 92086 Settlement notifications

Note: The 93rd CoA meeting, initially scheduled to take place on 24-25 March 2020, was postponed due to the COVID-19 pandemic. SIMs pertaining to the 93rd meeting are for reference only as Members may still add or remove questions until the actual convening of the meeting. Source: WTO Secretariat.

3.104. Other G20related SIMs that were discussed during the period under review related to follow-up questions on outstanding areas of concern (Table 3.23). A number of these matters have

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been raised in the CoA multiple times. Two of these SIMs have been raised in 15 CoA meetings attracting 56 and 27 questions each (i.e., Canada's new milk ingredient class and Canada's wine sale policy). Questions related to India's pulse policies have been raised in 10 CoA meetings whereas the U.S. proposed domestic support measures and India's sugar policies have both been discussed in 6 CoA meetings attracting 25 and 12 questions respectively. Other policies from Brazil, Canada, China, the European Union, India, Indonesia, Turkey, the United Kingdom and the United States were also the subject of repeated concerns under Article 18.6. The complete set of questions and answers can be accessed through the AG IMS by using the ID numbers provided in Table 3.23.62

Table 3.23 SIM (Article 18.6) concerning G20 members - questions previously raised

N° of Specific Question N° of meetings the CoA Implementation Products ID number raised by questions issue was meetings Matter (SIM) discussed Canada's New Milk Australia, Dairy, milk, 56 15 79, 80, 93048, 93002,93003, Ingredient Class India, New milk powders, 81, 82, 92076, 92078, 92002, Zealand, butter, cheese, 83, 84, 91132, 90018, 90120, United other 85, 86, 90039, 89020, 89053, States 87, 88, 89055, 88120, 88121, 89, 90, 88065, 88064, 88061, 91, 92, 87015, 87063, 87064, 93 87065, 87159, 87160, 86002, 86030, 86033, 85002, 85003, 85004, 85005, 85006, 85008, 85011, 85051, 85052, 85053, 85054, 85055, 85056, 84012, 84018, 84020, 84021, 84022, 84023, 84025, 84027, 84029, 84030, 84035, 84111, 84107, 84031, 83054, 83039, 82012, 82059, 82013, 82001, 81001, 81009, 81049, 81054, 81055, 81056, 80003, 80005, 80006, 80025, 79035 Canada's wine sale Australia, Alcoholic 27 15 79, 80, 93004, 93005, 92003, policy European 81, 82, 91137, 90040, 89021, Union, New 83, 84, 89054, 88096, 87016, Zealand, 85, 86, 87066, 86034, 85012, United 87, 88, 85057, 84017, 84106, States 89, 90, 84033, 84112, 84105, 91, 92, 83007, 83041, 83104, 93 83135, 82057, 82002, 81003, 81011, 81024, 81046, 81047, 81097, 80008, 80009, 80094, 80095, 79003 India's pulses Australia, Processed 47 10 84, 85, 93058, 93066, 93067, policies Canada, vegetables 86, 87, 92096, 92008, 92094, Russian 88, 89, 92049, 91005, 91008, Federation, 90, 91, 91075, 91076, 91077, Ukraine, 92, 93 91140, 90032, 90088, United 90029, 90004, 90043, States 89004, 89007, 89024, 89057, 88060, 88066, 88092, 88095, 88109, 87001, 87017, 87073, 87074, 87087, 87088, 87077, 87070, 87071, 87072, 87075, 87076, 86061, 86062, 86063, 86065, 86039, 86035, 85064, 84044 US Proposed Australia, Swine, milk, 25 6 88 ,89, 93079, 93084, 93144, domestic support Canada, fresh 90, 91, 93086, 93087, 92082, measures China, vegetables, 92, 93 92072, 92102, 91013, Colombia, wheat, corn, 91014, 91016, 91023, European coarse grains 91024, 91027, 91063,

62 In the AG IMS (http://agims.wto.org/), select the function "Search Q&A Submitted Since 1995" and input the ID number of the question concerned.

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N° of Specific Question N° of meetings the CoA Implementation Products ID number raised by questions issue was meetings Matter (SIM) discussed Union, India, 91080, 90035, 89047, Japan, 89066, 88030, 88048, Mexico, New 88028, 88047, 88029, Zealand, 88098 Ukraine India's sugar Australia, Sugar, cane or 12 6 87, 88, 93001, 92007, 92048, policies Brazil, beet sugar, 89, 90, 90033, 89058, 89090, Canada, other 92, 93 88046, 88130, 88129, European 88128, 88127, 88039, Union, 88042, 88043, 87002, Russian 87079 Federation India's skim milk Australia, Dairy, milk, 7 5 88, 89, 93008, 91151, 90002, powder export European milk powders, 90, 91, 89026, 88070, 88037, subsidies Union, New butter, cheese, 93 88122, 88040 Zealand, other United States India's support to Japan, Rice 4 4 90, 91, 93009, 92013, 91153, rice exports Thailand, 92, 93 90111, 90130 United States European Union - Canada, 6 4 89, 90, 92101, 92091, 91015, Modification of New 91, 92 90087, 90028, 90128, agricultural schedule Zealand, 90129, 89001 of commitments Thailand, Australia India's dairy loans United Dairy, milk, 4 4 89, 91, 93011, 92011, 91149, States milk powders, 92, 93 89027 butter, cheese, other US support to the Brazil, Cotton 4 4 86, 87, 92073, 90036, 87103, cotton sector European 90, 92 86069 Union, India Brazil's wheat quota Ukraine, Wheat 3 3 91, 92, 93043, 92046, 91001 Canada 93 Canada's Australia, Dairy, milk, 5 3 91, 92, 93047, 92075, 92077, compensation for European milk powders, 93 92001, 91002, 91018 farmers after trade Union, New butter, cheese, concessions Zealand, other, poultry, United dairy, milk, States milk powders, butter, cheese, other, eggs India's short-term United Dairy, milk, 3 3 91, 92, 93012, 92010, 91147 crop loans States milk powders, 93 butter, cheese, other India's Transport Australia, Dairy, milk, 5 3 91, 92, 93065, 93010, 92095, and Marketing United milk powders, 93 91006, 91154 Assistance (TMA) States butter, cheese, other India's wheat public United Wheat 3 3 91, 92, 93014, 92009, 91141 stockpiling States 93 Indonesia's measure New Zealand 3 3 91, 92, 93068, 92081, 91010 18 in DS477 and 93 DS478 EU coupled Brazil, India 3 3 91, 92, 93055, 92071, 91061 payments 93 United Kingdom's Indonesia, 3 3 83, 88, 93076, 88011, 83069 Modification of India 93 agricultural schedule of commitments India's wheat United Wheat 2 2 91, 93 93013, 91009 policies States, Ukraine China's rice policies United Rice 5 2 91, 92 92005, 91133, 91134, States 91135, 91136 India's National United Dairy, milk, 2 2 91, 92 92012, 91152 Dairy Plan Phase I States milk powders, butter, cheese, other EU support package Australia Bovine 2 2 91, 92 92079, 91004 to Irish beef farmers Turkey's flour export European Wheat 2 2 90, 93 93018, 90009 and Turkish Grain Union,

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N° of Specific Question N° of meetings the CoA Implementation Products ID number raised by questions issue was meetings Matter (SIM) discussed Board United States EU intervention New Milk powders 2 2 90, 92 92080, 92006, 90026 policy Zealand, United States

Note The 93rd CoA meeting, initially scheduled to take place on 24-25 March 2020, was postponed due to the COVID-19 pandemic. SIMs pertaining to the 93rd meeting are for reference only as Members may still add or remove questions until the actual convening of the meeting.

Source: WTO Secretariat.

3.105. Members continued to take steps towards the implementation of the December 2015 Nairobi Ministerial Decision on Export Competition. Out of the 16 Members with positive export subsidy commitment levels in their schedules at the time of adoption of the Decision, 9 are G20 economies. Australia, Mexico, South Africa, Turkey and United States have had their revised export subsidy schedules certified; Canada and the European Union circulated their draft revised schedules which are still pending for certification; and Brazil and Indonesia still have to circulate their revised draft ES schedules.

3.106. In addition to the Committee's annual dedicated discussion on the implementation of the Nairobi Decision on Export Competition, Members have the possibility to ask questions in connection with this Decision at any CoA meeting. During the two meetings covered by this Report, 6 questions were raised to G20 members regarding policies in the area of export subsidies, export credits, export credit guarantees or insurance programmes and international food aid (Table 3.24). The complete set of questions and answers can be accessed through the AG IMS by using the ID numbers provided in the table below.63

Table 3.24 Questions asked at the 92nd and 93rd CoA meetings in connection with the Nairobi Ministerial Decision on Export Competition

CoA Meeting Question raised Question ID Areas Number by answered by 93024 93 United States China Export credits, export credit guarantees or insurance programmes 93173 93 United States Japan Export subsidies 93175 93 United States Russian Federation Export credits, export credit guarantees or insurance programmes 92031 92 United States China Export credits, export credit guarantees or insurance programmes; state trading enterprises; international food aid 92032 92 United States Russian Federation Export subsidies 92044 92 European Union Russian Federation Export credits, export credit guarantees or insurance programmes

Source: WTO Secretariat.

3.107. The CoA continued its review of the implementation of Members' commitments under the Agreement. This review is largely carried out based on the notifications submitted by Members. There are 12 distinct notification requirements applicable in the domain of agriculture, covering the following areas: market access, domestic support, export subsidies, export prohibitions or restrictions and the follow-up to the Marrakesh Net Food-Importing Developing Countries (NFIDC) Decision. The applicability of a notification requirement to a Member is largely dependent on its specific commitments under the AoA. Out of the 12 notification requirements, the following 5 are "regular" or "annual" notification requirements: (i) imports under tariff and other quotas (MA:2); (ii) special SGs (MA:5); (iii) domestic support (DS:1); (iv) export subsidies (ES:1) and (v) total

63 In the AG IMS (http://agims.wto.org/), select the function "Search Q&A Submitted Since 1995" and input the ID number of the question concerned.

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exports (ES:2). Annual notifications are required to be submitted no later than a certain number of days following the end of the year in question, in accordance with the deadlines set out in document G/AG/2.

Chart 3.21 Number of questions raised per topic (mid-October 2019 – mid-May 2020a)

Overdue notifications 11

Market access 20 Domestic support 52

Export subsidies 10

nd rd rd a This chart includes question s raised for the 92 (October 2019) and 93 CoA meetings . The 93 CoA meeting , initially scheduled to take place on 24 -25 March 2020, was postponed in response to the COVID -19 pandemic. These questions are covered for reference only as Members may still add

or remove questions until the actual convening of the meeting.

Source: WTO Secretariat.

3.108. From 15 October 2019 to 15 May 2020, G20 members submitted 82 notifications (including addenda and corrigenda). A total of 82 questions were posed for the 92nd (30-31 October 2019) and 93rd (postponed) CoA meetings.64 These questions accounted for 52% of all notification-related questions raised in the CoA in that period. As seen in Chart 3.21, during the review period most questions concerned notifications related to domestic support, followed by questions on market access. A total of 11 questions were asked to China, European Union, India, Republic of Korea, South Africa and Turkey concerning overdue notifications.

Policy developments in agriculture in response to COVID-19 pandemic

3.109. On 22 April 2020, a group of 23 Members (including nine G20 members65) who collectively account for 63% and 55% of global exports and imports of agriculture and agro-food products, respectively, circulated a joint statement titled "Responding to the COVID-19 pandemic with open and predictable trade in agricultural and food products".66 This statement, presented to the General Council and to the CoA, pledges support to open and predictable agri-food trade while responding to the COVID-19 pandemic. Among other things, the communication encouraged Members to implement temporary working solutions to facilitate trade and noted that that export restrictions and similar trade restrictive measures on agriculture and agri-food products could potentially create an unpredictable trading environment that would adversely affect food availability and result in price spikes, increased price volatility, and lead to shortages of important food products.

3.110. In their communication, the co-sponsors made a number of commitments to ensure the well-functioning of global agriculture and agri-food supply chains, including ensuring the WTO consistency of emergency measures related to agriculture and agri-food products and designed to tackle the COVID-19 pandemic. They asked that those measures be targeted, proportionate, transparent, and temporary, and not create unnecessary barriers to trade or disruption to global supply chains for agriculture and agri-food products. The co-sponsors also committed to ensure

64 Brazil, Canada, China, European Union, India, Indonesia, Japan, Russian Federation, Kingdom of Saudi Arabia, Turkey, United Kingdom and the United States. 65 Australia; Brazil; Canada; European Union; Japan; Republic of Korea; Mexico; United Kingdom; and United States. 66 WTO document G/AG/30 and WT/GC/208.

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the transparency and predictability of those measures and to provide an opportunity for Members to review them.

3.111. The Agreement on Agriculture establishes disciplines for cases where Members institute export prohibitions or restrictions in order to prevent or relieve critical shortages of foodstuffs (Article 12 of the AoA). Transparency is at the heart of these disciplines. The AoA states that (a) Members are to give due consideration to the effects of such prohibition or restriction on importing Members’ food security; and (b) before any Member institutes an export prohibition or restriction, it shall give notice in writing, as far in advance as practicable, to the Committee on Agriculture comprising such information as the nature and the duration of such measure, and shall consult, upon request, with any other Member having a substantial interest as an importer with respect to any matter related to the measure in question." These written notices are referred to as Table ER:1 notifications. The AoA includes a special and differential treatment provision whereby the above requirements do not apply to developing country Members unless the measure is taken by a developing country Member which is a net-food exporter of the specific foodstuff concerned.

3.112. A total of four notifications informing of export restrictions and prohibitions in connection to the COVID-19 pandemic were submitted to the CoA during the period under review. The first of such notifications was received on 31 March 2020. The products covered by these restrictions are eggs, feed, pasta, rice, sugar, wheat and wheat flour. The durations of these restrictions and the symbol of the notifications can be found in the Table 3.25 below. All the concerned notifications can be accessed through the AG IMS (http://agims.wto.org/).

Table 3.25 Notified export restrictions (Table ER:1) in connection with COVID-19 pandemic

Issue date Member Notification number Duration of Relevant products subject restriction to measures 31/03/2020 Thailand G/AG/N/THA/107 One week Eggs 2/04/2020 Thailand G/AG/N/THA/107/Add.1 Extension of the Eggs measure by 1 month 31/03/2020 Kyrgyz G/AG/N/KGZ/8 6 months Wheat, wheat flour, rice, Republic pasta, sugar, eggs, feed 2/04/2020 North G/AG/N/MKD/26 40 days Wheat and wheat flour Macedonia

Source: WTO Secretariat.

3.113. The following box on COVID-19 impact and policy responses on the food and agriculture sector was provided by the OECD.

Box 3.5 COVID-19 and the Food and Agriculture Sector: Impacts and Policy Responses

The impacts of the COVID-19 pandemic are being felt by the agriculture and food sector, both directly and as a result of necessary measures put in place to contain the spread of the virus. Production. Agricultural sectors in many countries are experiencing seasonal labour shortages. Looking ahead, farmers may also face further difficulties in sourcing agricultural inputs due to restrictions on the movement of people and goods. In some cases, disruptions downstream from farms are causing surpluses to accumulate, straining storage and processing facilities, and increasing food losses. Shifts in consumer demand. The collapse in consumption of food away from home and the economic shock related to the pandemic are affecting demand for higher value premium products and those with more service addition. Lower oil prices are also reducing demand for biofuel crops. Food supply chains disruption. Production and distribution costs have increased and the available workforce has also been reduced. Transport and logistics services are causing disruptions, while border closures and additional procedures have led to congestion and delays, affecting the transit of perishable products. Livelihoods. Finally, and potentially most important of all, the impacts on livelihoods and food security in developing countries may be more severe, because food systems are more labour-intensive, food supply chains are less well developed, and the macroeconomic shock of the pandemic risks plunging large numbers of people into poverty. A high incidence of sickness among farmers and farm workers could have a substantial negative impact on agricultural production. How damaging these impacts turn out to be will depend on national and international policy responses in the short, medium and long term. The OECD has tracked domestic and trade policy responses across 54 countries, with more than 400 recorded policy interventions.

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At the domestic level, governments have implemented sector-wide and institutional measures, such as exempting key agriculture and food production and marketing activities from lockdown restrictions. Many governments have also introduced measures to safeguard the health of their workforce in agriculture and food and to ensure the availability of seasonal labour. Most have also taken a wide set of measures to support the sector through expanded direct financial aid, although some provided support via input and output measures for specific food chains. Many governments have also provided additional food assistance to vulnerable populations and acted to ensure affordability of consumer food. A number of governments have taken steps to deter panic buying and hoarding by ensuring the release of timely information about the availability and safety of food stocks. Governments have also taken specific steps to address disruptions in food chains and agricultural trade. In many cases, these measures have effectively addressed bottlenecks and allowed food products to move within and across borders. Governments in many countries adopted logistics and transportation measures to facilitate the transportation of food and agriculture products, such as setting up priority lanes for transportation of agriculture commodities, speeding transportation, exempting truck drivers from quarantine, simplifying procedures and easing access to essential agricultural inputs such as pesticides and veterinary medicines. Exporting countries have taken diverse measures to ease agricultural trade flows, including updating the manual of importer requirements for exporters; setting up funds to support the additional freight costs of aviation-based exporters of specific products with established markets; and providing flexibility around packaging and labelling requirements. A number of importers have reduced tariffs or expanded, or introduced additional flexibilities to, TRQs. Governments have also made greater use of digital tools to facilitate border procedures and reduce delays, for example, by allowing electronic copies of SPS certificates. Many countries have also engaged in international co-operation efforts. G20 Agriculture Ministers have discouraged trade restrictions, stressed the need to take the necessary actions to improve the functioning of food chains, support affected populations and advance towards more resilient and sustainable food systemsa. G20 Trade and Investment Ministers also stressed the importance of refraining from export restrictions on agricultural products and avoiding unnecessary stockpilingb. At the initiative of Canada, 23 WTO Members have committed to keep supply chains open and remove any existing trade restrictive measures on agricultural productsc. Agricultural ministers of 25 Latin American countries also committed to a series of actions, including assisting vulnerable producers and consumers, and ensuring the well-functioning of markets and limiting disruption of international traded. G20 members and major grain trading countries are also using the Agriculture Market Information Systems (AMIS) to share information and improve global market transparency. At the same time, several countries have imposed trade restrictions, including for food staples. Mostly these have taken the form of temporary export bans or export quotas. These measures are particularly harmful. There is a need to keep domestic, regional and international agro-food markets open, transparent and predictable. Well-functioning domestic markets, regional co-operation and an open international trading system are important to connect producers to market opportunities, and help food get to where it is needed. Co-operative global solutions may also be needed to address the needs of the poorest countries and ensure that COVID-19 pandemic does not result in a food crisis and that the food and nutrition security needs of vulnerable populations are met. Finally, looking beyond the immediate impacts of the pandemic, there is an opportunity to enhance the resilience, sustainability, and productivity of the agriculture and food sector. Governments, international organisations and other stakeholders can work together to learn from the crisis and accelerate investments and reforms to strengthen the resilience of food systems to a range of risks, including those associated with climate changee. a Viewed at: https://g20.org/en/media/Documents/G20_Agriculture%20Ministers%20Meeting_Statement EN.pdf. b Viewed at: https://g20.org/en/media/Documents/G20SS_Statement_G20%20Second%20Trade%20&%20Investment %20Ministerial%20Meeting_EN.pdf. c Viewed at: https://t.co/bmRPVVBPDn?amp=1. d Viewed at: http://www.fao.org/fileadmin/user_upload/rlc/docs/covid19/statement_ministers_agriculture_26countries. pdf. e OECD(2020), COVID-19 and the Food and Agriculture Sector: Issues and Policy Responses, OECD publishing, Paris, viewed at https://read.oecd-ilibrary.org/view/?ref=130_130816-9uut45lj4q&title=Covid- 19-and-the-food-and-agriculture-sector-Issues-and-policy-responses.

Source: OECD (2020), Agricultural Policy Monitoring and Evaluation 2020, OECD Publishing, Paris.

3.7 General Economic Support

3.114. At the December 2019 TPRB meeting dedicated to discussing the Director-General's Overview of Developments in the International Trading System, several WTO Members expressed concern about the poor response rate to the Director-General’s request for information on general economic support measures and on the absence of an Annex on such measures. In addition, introducing his Report to the meeting, the Director-General, repeated his call to the WTO

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membership to provide the Secretariat with guidance on how such measures should be reflected in future Trade Monitoring Reports.

3.115. Since July 2017, the Secretariat has been unable to justify the inclusion of a separate Annex on general economic support measures in the Trade Monitoring Reports. This has been partly due to the low participation and response rate of WTO Members to the request for information, and partly because such an Annex would have been biased against those Members that traditionally share and publish detailed information of such measures and programmes. Compounding the lack of information volunteered by Members, some delegations have often insisted on excluding general economic support measures identified by the Secretariat from public sources and for which verification was sought. The December 2019 TPRB meeting generated an exchange of views on how to address this issue, with several Members emphasizing the need to preserve and strengthen transparency through the Trade Monitoring exercise and expressing their strong support for the independent reporting of the Secretariat.

3.116. In response to the Director-General's March 2020 request for information for this Trade Monitoring Report, 34 WTO Members67 (European Union68; Hong Kong, China; Peru; Switzerland; Thailand; and Turkey) volunteered information on general economic support measures. Although many Members may not have introduced support measures during the review period, the participation rate remains low with 21% of the membership having shared regular support measures. The Secretariat's own research suggests that many support measures with potentially important ramifications for trade were implemented by Members during the review period.

3.117. Overall, 57 general economic support measures not explicitly linked to the COVID-19 pandemic were received from WTO Members of which 24 were received from two G20 economies. These measures, as well as those identified by the Secretariat, showed that the sectors which received significant financial disbursements included agriculture, food, transport and energy. Several support measures targeted investment in technology, industrial support, support to research and development and innovation programmes. Fiscal measures, soft loans, export incentive measures and loan guarantees for SMEs were also put in place. Several of these measures were multi-year programmes, with financial disbursements staggered over the lifetime of a project, while other measures were one-off grants or aid schemes.

COVID-19 related economic support measures

3.118. In response to the Director-General's March 2020 request for information for this Trade Monitoring Report, 47 Members 69 (Argentina; Australia; Canada; Chile; Costa Rica; European Union; Hong Kong, China; India; Indonesia; Macao, China; Maldives; Moldova; Norway; Peru; Qatar; Saudi Arabia; South Africa; Switzerland; Turkey) and one Observer (Azerbaijan) volunteered information on COVID-19 related general economic support measures. This represents a low participation rate as, only 29% of the membership have shared COVID-19 related support measures with the Secretariat.

3.119. The review period has seen an unprecedented number of general economic support measures put in place by governments as emergency responses to address the economic and social impacts of the COVID-19 pandemic. The number of COVID-19 related support measures and the scope of their coverage to some extent resemble measures put in place during the 2008-09 global financial crisis (GFC). However, as the pandemic has accelerated it has become clear that responses to the COVID-19 pandemic are different and more comprehensive compared to what was implemented in the context of the GFC. Above all, these measures have been taken in response to a global health emergency and they seek to address the profound social and economic disruption caused by it. To curb the spread of the virus, economies around the world have largely shut down and governments have adopted massive rescue packages. These have included support measures to sectors of the economy heavily affected by the crisis; funds to increase the capacity of national healthcare systems and to provide incentives to research into vaccines, diagnostics and

67 Counting the EU(27) and its members and the United Kingdom, separately. 68 The United Kingdom withdrew from the European Union as of 1 February 2020. During the transition period, which ends on 31 December 2020, European Union law, with a few limited exceptions, continues to be applicable to and in the United Kingdom. During the transition period, the information provided by the European Union which is relevant to this document continues to cover the United Kingdom. 69 Counting the EU(27) and its members and the United Kingdom, separately.

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treatments for COVID-19; aid schemes to support SMEs and larger companies; compensation schemes for the loss of revenue or additional costs related to the financial impacts of the coronavirus outbreak; financial support to households, self-employed workers and employees; and wage subsidies to help cover payrolls of companies affected by the crisis. Specific sectors targeted so far have included health, aviation, tourism, catering, cleaning and security, agriculture, fisheries but also childcare, creative industries and sport.

3.120. Another set of support measures put in place by governments in response to the COVID- 19 pandemic have included measures implemented by Central Banks to ease monetary policies; reduce policy rates, statutory reserve ratios and repo rates; quantitative easing; issuing and purchasing governmental bonds; easing debt terms and rescheduling deferrals on credit instalments to lower funding costs across the economy. Government responses have also included financial and fiscal measures to ensure economic stability, including strengthening the supply of credit to households and businesses; providing the banking system with additional liquidities; easing lending and borrowing terms; granting moratoriums; credit guarantees; and reducing taxes and fees. High-income economies' responses have been significantly more generous in terms of the number and variety of measures implemented and funds allocated, compared to low-income economies. Poorer economies’ responses have been less numerous and have relied, to a large extent, on funding or other assistance obtained from international organisations and/or donors.

3.121. From the Secretariat's own research and from Members submissions, 468 support measures were put in place by 79 WTO Members70 and 3 Observers71 in response to the COVID-19 pandemic from the beginning of March 2020 and up to 15 May 2020. Of these, 58% (270 measures) were put in place by G20 economies. Several of these measures have been revised and expanded over time by governments to adjust to the increasing severity of the pandemic. The Secretariat based its research on COVID-19 related support measures primarily on official government and Central Bank websites. Some 7% of the measures were sourced from media reports. Given the extent of the crisis, the number of measures identified by the Secretariat or communicated by Members is not exhaustive. In addition, financial support programmes provided by the IMF, World Bank and regional banks (such as the Asian Infrastructure Investment Bank, Asian Development Bank or the African Development Bank) were not covered by the Secretariat’s research.

3.122. Of the 468 COVID-19 related economic support measures identified during the review period, 301 (64%) were submitted to the Secretariat by 47 WTO Members72 (Argentina; Australia; Canada; Chile; Costa Rica; European Union73; Hong Kong, China; India; Indonesia; Macao, China; Maldives; Moldova, Republic of; Norway; Peru; Qatar; Saudi Arabia, Kingdom of; South Africa; Switzerland74; and Turkey) and one Observer (Azerbaijan). Out of these, 191 measures were received by ten75 G20 economies. During the review period, the COVID-19 related support measures gathered by the Secretariat and submitted by Members fell into the following categories: 40% of measures were grants, 13% monetary measures, 11% fiscal measures, 9% financial measures, 9% specifically targeting SMEs, 8% loans, 6% credit guarantees, and 4% stimulus packages (Chart 3.22). The COVID-19 related general economic support measures appeared, on the face of it, to be of a temporary nature. Several measures were one-off grants, and others included disbursements staggered over a few months up to three years. Some of these measures form part of rescue plans and stimulus packages worth several trillion US dollars.

70 Counting the EU(27), its member States and the United Kingdom, separately. 71 Azerbaijan, Ethiopia and Serbia. 72 Counting the EU(27), its member States and the United Kingdom, separately. 73 The United Kingdom withdrew from the European Union as of 1 February 2020. During the transition period, which ends on 31 December 2020, European Union law, with a few limited exceptions, continues to be applicable to and in the United Kingdom. During the transition period, the information provided by the European Union which is relevant to this document continues to cover the United Kingdom. 74 Through the MSMEs Informal Group information exchange platform. 75 Argentina; Australia; Canada; European Union; India; Indonesia; Kingdom of Saudi Arabia; South Africa; United Kingdom; and Turkey.

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Chart 3.22 COVID -19 related economic support measures, by type

Stimulus Guarantees Other 4% 6% 0%

Loans 8%

SMEs 9% Grants 40%

Financial measures 9%

Fiscal measures 11% Monetary measures 13%

Source: WTO Secretariat.

3.123. The above has captured activities in the area of general economic support between mid- October 2019 and mid-May 2020. In the context of responses to the COVID-19 pandemic the introduction of new and/or modified measures to reflect changing circumstances has continued with considerable regularity. This is particularly the case for many Central Banks which have been explicit about the need to maintain flexibility in terms of the tools, lending programmes and interest rate decisions required to deal with new challenges as they emerge.

3.124. The Trade Monitoring exercise does not make any judgement as to the WTO compatibility of any of the measures referred to in this Section. While it is possible that these measures, whether taken as part of a Member's overall commercial strategy or as part of a Member's emergency response to the COVID-19 pandemic, may affect trade in some way, it is not always straightforward to conclude that they restrict or facilitate trade (and by how much), or that they distort competition. Nevertheless, and recognising that other international organizations are often better placed to report on and analyse many of these measures, providing a brief overview of such measures taken during the review period represents an important element of transparency of developments in the international trading system. The Secretariat will continue to monitor and report on general economic support measures within the resources available to it. An important element of this will be to monitor time-limited support measures introduced in the context of the COVID-19 pandemic so that G20 economies can track their evolution and effects as the world exits the health crisis and enters a recovery period.

3.125. The following box on Government support and the COVID-19 pandemic was contributed by the OECD. Box 3.6 Government support and the COVID-19 pandemic

The economic consequences of the COVID-19 pandemic call for urgent action to support households and firms alike, but the design of this support will be critical in ensuring that it does not result in enduring global market distortions. While the prime concern of governments at present is to reinvigorate economic activity, experience from the 2008-09 crisis suggests that poorly designed stimulus packages can have negative, long-lasting consequences for both global trade and national welfare. While there is an urgent need to deploy measures quickly, care should be taken to ensure that today’s stimulus does not sow the seeds of enduring trade distortions that prove politically difficult and economically costly to unwind. Experience tells us that support could more effectively be focused on measures that benefit smaller businesses (which are generally the least capable of coping with shocks and less likely to distort global trade, while offering the biggest ‘bang for the buck’ in terms of employment and social stability), as well as on investments to strengthen broader health and social safety nets that help people and ultimately help kick-start demand after the immediate crisis.

Support packages that are time-limited, targeted, cash-based, and consistent with longer-term objectives are the basis for ensuring a sustainable recovery. One way to ensure that necessary economic stimulus does not end up distorting trade and global competition is to make support measures time-limited, e.g. through sunset clauses. This will help mitigate the risk that temporary support becomes entrenched and outlives its purpose. Another is to favour

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measures that are targeted at those companies and sectors that experience the most disruption as a direct result of the pandemic, with a view to avoiding windfall benefits or rescuing firms that would have failed absent the pandemic. This will help minimise the risk that stimulus spawns a new cohort of corporate zombies that restrict competition, dampen domestic productivity growth, distort international markets, impede the economic recovery and, in some cases, aggravate economic disparities.

Where support targets households directly, governments should favour measures that leave consumers free to decide how to spend the cash they receive. This contrasts with measures that tie support to the consumption of specific goods or services (e.g. fossil-fuel subsidies or subsidised purchases of locally made products), which can distort relative prices, send inaccurate signals to producers, and reduce consumer choice. Additionally, governments could reap additional benefits by aiming for support measures that achieve ‘double dividends’ and help ensure that longer- term policy objectives (e.g. climate-change mitigation) are not sacrificed for short-term economic stimulus.

Support provided through the financial system will play a critical role but needs scrutiny. Many responses to date appear to include financing on preferential terms. Crisis conditions can dramatically reduce the availability of private finance, starving firms of operating capital when it is needed most, especially MSMEs. Government intervention is essential to fill in the gaps left by private financial institutions, but care should be exercised to ensure that firm- specific credit risks are distinguished from more systemic risks that stem from the crisis. This is important to prevent capital from being misallocated. Governments may also have to inject equity into heavily indebted firms. This form of support can be particularly disruptive to competition and effective resource allocation, underscoring the need for transparency and a clear exit strategy.

Policy transparency is fundamental at all stages of the crisis response. Transparency is valuable ex ante to help manage business expectations and co-ordination, foster public support domestically, as well as enable countries to exchange information on what each is doing to stimulate the economy. It is a key ingredient in building the trust that governments need at home and abroad in troubled times. As countries emerge from the COVID-19 pandemic, there will be a need for governments to evaluate the measures they introduced; policy transparency will enable greater accountability and oversight, and help countries to learn from current experience to better prepare for the future.

Source: OECD.

3.8 Other Selected Trade Policy Issues

3.126. The following Section provides a brief overview of the other selected trade policy issues where important developments took place during the review period. It also includes follow-up to a number of issues which saw outcomes at MC11.

Trade and environment

3.127. Discussions at the 26-27 November 2019 meeting of the Committee on Trade and Environment (CTE) continued to raise important global issues at the intersection between trade and environmental policies. WTO Members held dedicated discussions at the CTE, and at side- events – in what was labelled "Environment Week" – on trade's potential role in facilitating the "circular economy" and on plastics pollution. Delegations shared their experience on measures adopted to promote circular economy and resource efficiency as well as to address plastics, e- wastes and marine pollution. Relevant international organizations also briefed delegations on their work on these issues.76 Several Member-driven workshops on the topic were held back-to-back with the CTE meeting77, providing Members with the opportunity to report on these events at the formal meeting of the CTE. Most Members have used this setting to reiterate more strongly the importance of trade and environment matters, including in the lead-up to MC12.

3.128. Delegations were also briefed on the relevant outcomes of the latest Conference of the Parties (COP) of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)78, where Canada shared its recent trade measures adopted to combat the practice of shark finning.79 Delegations were further briefed on ongoing work related to, inter alia, areas of potential interest in relation to market access for environmental services, a symposium on the links between trade and natural disasters, an initiative launched by New Zealand, Norway, Iceland, Costa Rica and Fiji to negotiate an Agreement on Climate Change, Trade and Sustainability (ACCTS), and relevant work on trade and environment by observer organizations.80

76 Annual Report 2019, WTO document WT/CTE/26 and WTO document WT/CTE/M/68, 17 March 2020. 77 WTO document WT/CTE/M/68, 17 March 2020, paras. 2.40-46. 78 Annual Report 2019, WTO document WT/CTE/26, 9 December 2019, para. 2.1. 79 WTO document WT/CTE/M/68, 17 March 2020, paras. 3.11-18. 80 WTO document WT/CTE/M/68, 17 March 2020, paras. 1.17-24, 2.24 and 4.2-5.

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3.129. Given the strong interest on the topic of circular economy, the Chairperson of the CTE informed Members that the next meeting scheduled for March 2020, would continue to focus on the issue.81 Several Members had also announced their intention to organize workshops on circular economy and on plastic pollution back-to-back with the CTE. However, due to contingency measures adopted in relation to the COVID-19 outbreak, the meeting of the CTE was postponed to a later date.

Trade facilitation

3.130. The Trade Facilitation Agreement (TFA) entered into force on 22 February 2017, when two thirds of WTO Members presented their corresponding instruments of acceptance. At the conclusion of the review period, the data registered 151 ratifications, which represents 92% of the membership. Six additional instruments of acceptance were received by the Secretariat since 1 October 2019.

3.131. Members also remained active in the presentation of implementation notifications. The notifications of 37 Members comprised 9 category A commitments, 42 category B commitments and 26 category C commitments (Chart 3.23). Among the 37 Members, 6 made a category shift from B to C and 5 Members made a category shift from C to B. One Member notified, and was granted, a request for additional time to implement a provision. Under Article 16.2 (b) of the TFA, 9 least-developed country Members requested, and were granted, an extension of the deadline of 22 February 2020 in order to submit the definitive dates for notifying their category B provisions.

3.132. Notifications were also made on the transparency side. 28 Members presented notifications under articles 1.4, 10.4.3, 10.6.2 and 12.2.2, of which 3 Members made transparency notifications in relation to COVID-19 measures. Furthermore, 2 Members notified their technical assistance and capacity building activities, in accordance to article 22 of the TFA. With regard to notifications under article 22.3, 11 Members made notifications relating to contact points for coordinating capacity building support. 4 Members notified their arrangements and progress in the provision of technical assistance and capacity building support.

Chart 3.23 Number of WTO Members that presented TFA notifications, 1 October 2019 to 15 May 2020

Category A 9

Category B 42

Category C 26

Category shift from B to C 6

Category shift from C to B 5

Extension of time to implement 1

Transparency notifications 28 COVID-19 related transparency 3 notifications

Arts. 22.1 and 22.2 2

Art. 22.3 11

Source: Viewed at: https://tfadatabase.org.

3.133. During the review period, the WTO's Trade Facilitation Agreement Facility (the Facility, or TFAF) organized or participated in nine demand-driven activities contributing to the full implementation of the WTO Trade Facilitation Agreement in WTO Members. Training and

81 Annual Report 2019, WTO document WT/CTE/26, para. 4.8 and WTO document WT/CTE/M/68, 17 March 2020, para. 6.10.

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presentations by WTO officials were delivered to over 350 participants, representing around 90 WTO Members, of which 33 LDCs. These activities led to 31 notifications being submitted to the WTO Trade Facilitation Committee by Members that had participated in TFAF training, within a period of eight weeks. In addition, the TFAF also supported 14 Members to submit an expression of interest as a first step to apply for a TFAF grant, i.e. assistance available for Members that have been unable to identify support from "traditional" donors and development partners.

3.134. Since the emergence of the COVID-19 pandemic in March, the TFAF has been acting on its mandate to coordinate other international organizations working to implement the TFA. The Facility immediately gathered together relevant resources and tools from partners at the World Customs Organization, World Bank Group, UNCTAD, Global Alliance / World Economic Forum, International Air Transport Association, Commonwealth Secretariat, United Nations Economic Commission Europe, International Railway Union and others to providing links and a brief explanation of each and published these on the Facility website.82

Regional trade agreements (RTAs)

3.135. The G20 economies continue to account for a major share of current RTA activities. As of 15 May 2020, 303 RTAs had been notified to the WTO and were in force. All WTO Members are now party to at least one RTA. Of these RTAs, around two-thirds (64%) involve at least one G20 economy. The share of intra-G20 RTAs is, however, considerably smaller, at only 7% of all RTAs. Thus, while G20 economies have a large number of RTAs in force, the share of RTAs with other G20 partners is limited and, in the case of some, such as the Russian Federation and the Kingdom of Saudi Arabia, this share is zero (Chart 3.24).

Chart 3.24 Cumulative number of RTA partners (RTAs in force, notified and not notified) (Number) 75 70 65 G20 partners Non-G20 partners 60 55 50 45 40 35 30 25 20 15 10 5 0

Note: Darker colours indicate the number of G20 partners.

Source: WTO Secretariat.

3.136. In their Ministerial Statement, trade and investment Ministers of the G20 agreed to take immediate measures to facilitate trade in vital medical supplies and equipment, consistent with

82 Viewed at: https://www.tfafacility.org/covid-19-resources

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national requirements.83 The participation of G20 economies in RTAs can facilitate trade in such products through lower tariffs and other provisions seeking to encourage recognition of exporting country standards, regulations and conformity assessment.

3.137. Among the ten largest importers of medical products84, seven are G20 members, while six out of the world's top ten exporters are G20 members.85 In their RTAs currently in force the G20 economies are expected to have liberalized 82% of their tariff lines by 2020. At the end of implementation of their RTAs, almost 16% of tariffs with respect to imports from their RTA partners will remain subject to the MFN rate (Chart 3.25).

Chart 3.25 Tariff liberalization in RTAs (%) 100 99.5 99.5 97.4 90 89.4 89.1 80 84.3 84.3 84.3 81.5 82.4

70 74.1 71.6 69.9 68.4 60 58.5 50

20 18.5 15.7 10 10.6 10.9 0.5 0 All Developed Developing LDCs G20

EIF By year 2020 EOI Re main dut iable

Note: EIF : Entry into force . EOI: End of implementation.

Source: WTO RTA Database.

3.138. Based on their commitments in RTAs, G20 members have reduced their preferential tariffs for RTA partners to 2% by 2020 compared to their overall average MFN rate of 4.4% (Chart 3.26).86 MFN average tariffs for G20 economies are highest for personal protective products and medical supplies (7.6% and 6.1% respectively). In comparison preferential averages are currently 2.1.% and 2.8% respectively. For the other two product categories, medical equipment and medicines, the preferential average in 2020 is 1.3% and 1.6% respectively. Thus, in all four categories, G20 members have liberalized tariffs considerably in their RTAs.

83 Trade and Investment Ministerial statement, 30 March 2020 (viewed at: https://g20.org/en/media/Documents/G20_Trade%20&%20Investment_Ministerial_Statement_EN.pdf). 84 The list of medical products under four categories (medical equipment; medical supplies; medicines; and personal protective (PP) products) has been compiled by the WTO Secretariat, as contained in the Information Note "Trade in Medical Goods in the Context of Tackling COVID-19" (viewed at: https://www.wto.org/english/news_e/news20_e/rese_03apr20_e.pdf). 85 These are the United States, Germany, China, Japan, United Kingdom, France, and Italy for imports and Germany, the United States, China, France, Italy and the United Kingdom for exports (see Information Note above). 86 The averages do not include the Kingdom of Saudi Arabia for which no preferential data are available.

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Chart 3.26 Average MFN and preferential rates in RTAs by product groups

(a) All categories (b) Medical equipment

5.0 3.5 4.5 3.0 4.0 3.5 2.5 3.0 2.0 2.5 2.0 1.5

1.5 1.0 1.0 0.5 0.5

0.0 0.0 All Developed Developing LDCs G20 All Developed Developing LDCs G20

7.0 3.5

6.0 3.0

5.0 2.5

4.0 2.0

3.0 1.5

2.0 1.0

1.0 0.5

0.0 0.0 All Developed Developing LDCs G20 All Developed Developing LDCs G20

(e) Personal protective products

12.0

10.0

8.0

6.0

4.0

2.0

0.0 All Developed Developing LDCs G20

MFN By year 2020

Note: No data available for the Kingdom of Saudi Arabia (which is excluded from calculations for the G20).

Source: WTO RTA Database and WTO IDB Database.

Government procurement

3.139. The Agreement on Government Procurement (GPA) currently has 20 Parties covering 48 WTO Members87, including ten G20 economies.88 35 WTO Members/Observers participate as

87 Counting the European Union and its 27 member States and the United Kingdom, which are all covered by the Agreement, as one Party.

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Observers in the GPA Committee, including nine G20 economies.89 At present, eleven WTO Members are in the process of acceding to the GPA90 and four undertook commitments in their accession protocols to initiate accession to the GPA.91

3.140. China and the Russian Federation are continuing to pursue their respective accessions to the GPA.92 Discussions have been conducted on China's accession based on its seventh market access offer that was circulated on 21 October 2019. China indicated that preparatory work is underway to modify its legislation on government procurement. The Russian Federation indicated that it is engaging with local governments in preparation of its next market access offer.

3.141. Significant progress has also been made on the United Kingdom's expected future participation in the GPA in its own right. In line with the decision of the GPA Committee93 and the EU-UK Withdrawal Agreement, the United Kingdom continues to be covered by the GPA as a member State of the European Union until the expiry of the transition period established by the Withdrawal Agreement. The United Kingdom circulated its revised replies to the Checklist of Issues on 27 March 2020 and confirmed its intention to accede to the GPA in its own right at the end of the transition period to ensure continuity.

3.142. During the review period, the Committee continued to advance work in relation to the agreed Work Programmes94, that were adopted at the time of the conclusion of the renegotiation of the GPA in 2012. These are intended to promote transparency with respect to Parties' implementation of the GPA; facilitate, where relevant, improvements in the administration of the GPA; and contribute, where appropriate, to preparations for future negotiations that are called for in the GPA. Recent discussions are focused on (i) sustainability in Parties' procurement activities; (ii) the collection and reporting of statistical data; and (iii) access to government procurement activities by SMEs.

3.143. In response to the COVID-19 pandemic, various WTO Members have adopted policies and/or guidance on government procurement during the outbreak in emergency situations. These measures aim, for example, at achieving enhanced efficiency of procurement activities to ensure timely access to health-related goods and services. Guidance has been issued to draw government procurement authorities' and suppliers' attention to the availability of emergency procurement provisions in existing government procurement legislation. Such provisions allow procuring entities to deviate from standard procurement procedures to address difficulties and challenges arising in situations of extreme urgency like the COVID-19 pandemic. A number of GPA Parties have provided information on their measures to the WTO for transparency purposes. 95

Aid for trade

3.144. Global aid-for-trade (AfT) disbursements provided in the period 2006-2018 totalled USD 451.6 billion.96 From a baseline of USD 20.3 billion for 2006 to USD 45.1 billion in 2018, disbursements have increased by 122% overall. Spending on Aid-for-Trade support in 2018 was

88 Australia, Canada, European Union, France, Germany, Italy, Japan, Republic of Korea, United Kingdom and United States. In line with the decision of the GPA Committee on the United Kingdom's GPA membership in its own right for the post-Brexit period and as the result of the withdrawal agreement between the European Union and the United Kingdom that provides for a transition period during which European Union law would apply to and in the United Kingdom, the United Kingdom is covered by the GPA until the date of expiry of that transition period. 89 Argentina, Brazil, China, India, Indonesia, Russian Federation, Kingdom of Saudi Arabia, Turkey and United Kingdom in its own right. 90 Albania, China, Georgia, Jordan, Kazakhstan, Kyrgyz Republic, North Macedonia, Oman, Russian Federation, Tajikistan and United Kingdom. Among these Members, the United Kingdom is seeking to accede to the revised GPA in its own right for the period after the transition period provided for under the EU-UK Withdrawal Agreement. 91 Afghanistan, Mongolia, Kingdom of Saudi Arabia and Seychelles. 92 WTO document GPA/AR/2. 93 WTO document GPA/CD/2. 94 WTO document GPA/AR/2. 95 WTO document RD/GPA/103. 96 Aid-for-trade figures were collected and compiled from the Organisation for Economic Co-operation and Development (OECD) through the Creditor Reporting System (CRS). As at 1st May 2020, figures available encompass the period 2006 to 2018 (i.e. from inception of the Aid-for-Trade initiative to the latest year for which figures have been compiled).

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broadly equivalent to 2017 (a record year, during which disbursements reached USD 45.2 billion). In 2018, 56% of support went to economic infrastructure, 41% to building productive capacity and 3% to trade policy and regulations. In terms of geographic distribution, the two largest recipients were Africa (38% of disbursements) and Asia (36%), followed by Europe (8%), the Americas (7%) and Oceania (1%). Ten percent of disbursements supported projects implemented at a global level.

3.145. Least developed countries (LDCs), a particular focus group of the AfT initiative, received USD 13.5 billion in AfT funding (30% of the total in 2018). The 2018 total represents an increase of USD 0.7 billion on the 2017 funding figure. Lower middle income countries received 38% of the total, upper middle income countries 14%.

3.146. The top 10 AfT donors in 2018 were EU Institutions (USD 7.5 billion), Japan (USD 7.3 billion), the World Bank Group (USD 6.4 billion), Germany (USD 4.7 billion), France (USD 2.5 billion), the United Kingdom (USD 2.4 billion), the United States (USD 2.2 billion), Kuwait (USD 1.4 billion), Asian Development Bank (USD 1.2 billion) and the African Development Bank (USD 1.0 billion). The top 10 recipients for 2018 were India (USD 3.5 billion), Bangladesh (USD 2.1 billion), Egypt (USD 1.9 billion), Ethiopia (USD 1.7 billion), Indonesia (USD 1.4 billion), Turkey (1.4 billion), Viet Nam (USD 1.4 billion), Kenya (USD 925.6 million) and Tanzania (USD 845,4 million). USD 4.4 billion were disbursed for projects at a global level, USD 1.2 billion for Sub- Saharan-wide projects and USD 1,0 billion for African-wide projects. In 2018, global commitments of Aid for Trade reached a total USD 602.7 billion in the period 2006-2018. At USD 57.7 billion for 2018, they are slightly lower than their record high registered in 2017 (USD 60.0 billion).

3.147. In the current biennial, work taking place within the framework of the WTO-led Aid-for- Trade initiative is planned around the 2020-21 Work Programme themed "Empowering Connected, Sustainable Trade" (WT/COMTD/AFT/W/81). The focus of the programme lies in the opportunities that digital connectivity and sustainability offer for economic and export diversification – and how Aid for Trade can help empower different economic actors to realize these opportunities. The centrepiece of the Work Programme is expected to be the 8th Global Review of Aid for Trade. Understanding the opportunities that green growth and digital connectivity offers to meet multiple targets in the 2030 Agenda whilst promoting economic and export diversification will be a particular focus of the monitoring and evaluation (M&E) exercise underpinning the 8th Global Review.

3.148. Box 3.7 summarizes trade and development support mobilized until mid-May 2020 by the IMF and multilateral development banks in emergency response to address the economic impacts of the COVID-19 pandemic. The information covered in the box is not exhaustive.

Box 3.7 Emergency trade and development support in emergency response to address the economic impacts of the COVID-19 pandemic

The International Monetary Fund's (IMF) announced that its response to the COVID-19 pandemic and economic crisis would be fivefold: i. Providing emergency financing to meet the expected demand of USD 100 billion by 102 of its member countries to date. ii. Approving immediate debt service relief to 25 countries under the IMF's revamped Catastrophe Containment and Relief Trust (CCRT) which The Fund is working to triple from USD 500 billion to 1.4 trillion to cover and extend the duration of relief. iii. Calling for bilateral debt relief, which the G20 responded to on April 15 by suspending repayment of official bilateral credit from the poorest countriesa. iv. Enhancing liquidity by approving the establishment of a Short-term Liquidity Line (SLL) to further strengthen the global financial safety; and v. Adjusting existing lending arrangements as well as augmenting existing lending programmes to accommodate urgent new needs arising from the COVID-19 pandemic. The World Bank Group (WBG) has announced a USD 14 billion package addressing the immediate health and social consequences of the outbreak. Furthermore, it looks to allocate as much as USD 160 billion in financial support to aid in economic recovery efforts over the next 15 months. In April 2020, along with the IMF, the WBG addressing the G20 called for debt suspension for the poorest and most fragile countries. Among regional developments, the Asian Development Bank (AsDB) has tripled its initial response package to USD 20 billion to support its Developing Member Countries (DMC) to aid in pandemic response effortsb.

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In early April 2020, the African Development Bank (AfDB) unveiled the creation of a USD 10 billion package: "The COVID-19 Response Facility, which entails USD 5.5 billion for sovereign operation in AfDB counties and USD 3.1 billion for sovereign and regional operations for countries under the African Development Fund for the most fragile countries. An additional USD 1.35 would be devoted to private sector operationsc. The Islamic Development Bank (IsDB) set up a comprehensive USD 2 billion package, dedicating a significant portion of it to support and empower the MSMEs sector in member countriesd. The European Bank for Reconstruction and Development (EBRD) has unveiled an emergency EUR 1 billion “Solidarity Package” of measures to help companies across its regions deal with the impact of the COVID-19 pandemic. Inter-American Development Bank (IaDB) has injected an additional USD 3.2 billion in view of the COVID-19 pandemic. Therefore, approximately USD 12 billion will be available for members to aid in relief and support efforts. The BRICS Bank/New Development Bank has approved an emergency assistance of RMB 7 billion (approximately USD 985 million) to aid in Chinese relief efforts. Notably, this is the Bank’s first assistance program for outbreaks within its member cohort.

a IMF. Viewed at: https://www.imf.org/en/About/FAQ/imf-response-to-covid-19. b AsDB. Viewed at: https://www.adb.org/news/adb-triples-covid-19-response-package-20-billion. c AfDB. Viewed at: https://www.afdb.org/en/news-and-events/press-releases/african-development-bank- group-unveils-10-billion-response-facility-curb-covid-19-35174 d ISDB. Viewed at: https://www.isdb.org/fr/node/44432.

Source: IMF.

Trade finance

3.149. During the review period, importers as well as exporters experienced major difficulties as result of the COVID-19 pandemic in terms of cost and availability of short-term trade financing. According to the expert group on trade finance which met on 30 March,97 an increased perception of risk by financial institutions and liquidity issues experienced either by financial institutions or by other providers of trade finance, are the main reasons for these difficulties. Global banks have been cutting down their lines of credit or confirmation of letters of credit for economies assessed as high risk – mostly developing and least-developed economies. Indeed, the perception of the risk of non-payment is high, as banks anticipate an increasing number of failures among their clients. Liquidity issues exacerbate the COVID-19 measures put in place by governments by reducing economic activity and delaying or extending the terms of payments. Developed countries are also facing serious trade finance challenges, despite banks providing massive payment advances to core customers. “Force Majeure” payment clauses98 in trade finance contracts have been activated in selected sectors, such as air transport, tourism, automobile and machinery industries.

3.150. As during the 2008-9 financial crisis, many governments have introduced schemes to support companies involved in international trade, in the form of guarantees, working capital, pre- shipment finance, import guarantees or reinsurance capacity by public insurers (export credit agencies). The Berne Union, the International Union of Credit and Investment Insurers, is keeping a record of the measures announced. The EU has temporarily waived some rules on state aid, to allow export credit agencies of Member States to provide support to traders. Multilateral Development Banks (MDBs) have also implemented emergency support programmes and facilities dedicated to trade finance and working capital for companies impacted by the collapse of trade as a result of the pandemic. The demand for trade finance facilities has traditionally been an indicator of market gaps. This demand has increased by 40% for the International Finance Corporation (IFC), 80% for the Asian development Bank, 100% for the EBRD, African Development Bank and Afreximbank. This demand either comes directly from the companies, for example as working capital for the purchase of inputs, or by food producers to access advanced cash for their exports, or from banks in developing countries facing withdrawal in the confirmation of their letter of credits by global banks. Requests for multilateral banks facilities have come from over 80 countries, showing the global extent of the crisis. The US Federal Reserve reactivated the US dollar swaps with several central banks, a positive development for international trade and trade finance, 80% of which still relies on the US currency. The ECB and Chinese central banks have also stepped in, to ensure enough liquidity in inter-bank markets.

97 WTO document WT/WGTDF/W/95. 98 “Force Majeure” clauses seek to delay, postpone, suspend or even cancel contract obligations. In the case of trade finance, clauses have been invoked to cancel orders, delay payments, or postpone deliveries.

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3.151. The WTO is closely monitoring the situation, as reduced support by the banking system and declines in inter-firm trade credit can have significant knock-on effects on traders’ solvency within the value chains, and therefore harm the recovery. Trade finance is an area in which international statistics are scarce. The WTO is in contact with MDBs and representatives of the private sector as part of its monitoring effort. Since the outbreak of the COVID-19 pandemic the expert group on trade finance has met virtually. In other developments, the B20 issued a Statement on Finance and Trade including a call to “enable continued trade during the crisis via trade finance”.

Fisheries subsidies

3.152. Although end-2019 had been seen as the deadline for an agreement on WTO disciplines on fisheries subsidies it was not possible to achieve this objective. However, in a series of meetings of the Negotiating Group on Rules in late 2019, Members stated that they were fully committed to reaching an agreement at the next WTO Ministerial Conference that was to take place in June 2020 in Nur-Sultan in Kazakhstan. They also affirmed that they were looking for an ambitious outcome based on the mandate from target 14.6 of the Sustainable Development Goals and the MC11 Ministerial Decision, to reach an agreement on disciplines that prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing, and eliminate subsidies that contribute to illegal, unregulated and unreported (IUU) fishing, with appropriate and effective special and differential treatment for developing country Members and LDC Members being an integral part of these negotiations.

3.153. Considerable progress was made in late 2019 and in the first months of 2020 as the Chair and facilitators engaged with delegations, the facilitators prepared new drafts of their working documents and the Chair was asked to prepare a draft consolidated text on which Members could focus as they prepared for senior level involvement and the June Ministerial Conference where a final decision would be made.

3.154. However, as a result of the COVID-19 pandemic MC12 scheduled for June 2020 was postponed without a new date being set. The ability of delegations to engage in detailed negotiations has been severely curtailed by restrictions on movement and refocusing of priorities on addressing the pandemic. Furthermore, the complex legal, technical and political issues that have to be addressed and the logistical challenges that many delegations have with remote technologies and with long-distance coordination have meant that it has not been possible to use virtual meetings to continue negotiating discussions. Despite these difficulties, delegations have continued to engage in exchanges about proposals using written procedures, and Members indicate that they remain committed to a meaningful outcome in line with the mandate.

Electronic commerce

3.155. Discussions on electronic commerce in the WTO are continuing under two parallel tracks – multilaterally under the General Council and its relevant subsidiary bodies, as well as under the Joint Statement on Electronic Commerce initiative. At the multilateral level, efforts are ongoing to reinvigorate the 1998 Work Programme on Electronic Commerce. Since MC11, WTO Members have been focusing on the impact and scope of the decision not to impose customs duties on electronic transmissions (the Moratorium). In October 2019, the General Council Chair began consultations with Members on the way forward on the Work Programme and the Moratorium. This resulted in a decision by the General Council in December 2019 to reinvigorate the Work Programme and to extend the Moratorium until MC12. Members also agreed to conduct structured discussions in early 2020 based on all trade-related topics of interest brought forward by Members, including on scope, definition and impact of the Moratorium on customs duties on electronic transmissions.

3.156. In March 2020, two submissions by Members on the impact of the Moratorium were circulated.99 A workshop to look at different aspects concerning the imposition of customs duties on electronic transmissions scheduled for March 2020, as well as all other meetings, including an informal open-ended meeting to discuss Members' submissions, were suspended due to the COVID-19 pandemic. Under the Joint Statement on Electronic Commerce initiative, 76 WTO Members issued a Joint Statement in January 2019 launching WTO negotiations on trade-related aspects of electronic commerce. Since then, eight additional Members have joined, bringing the

99 WTO documents WT/GC/W/798 and WT/GC/W/799.

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total number of participants to 84. Negotiations are organized around 6 focus groups: enabling digital trade/e-commerce; openness and digital trade/e-commerce; trust and digital trade/e- commerce; cross-cutting issues, such as transparency, domestic regulation, and cooperation; telecommunications; and market access and customs duties on electronic transmissions. To ensure that the development dimension remains integral to the discussions, delegations are also encouraged to consider the unique opportunities and challenges faced by developing countries and LDCs, as well as by MSMEs, in relation to each issue under discussion.

3.157. To date, seven negotiating clusters have been held and over 30 proposals have been submitted. Negotiations are based on streamlined texts of Members' proposals. In 2020, more time has been allocated for small-group and informal meetings to assist delegations in further streamlining the text and reducing the number of different textual options. However, due to the COVID-19 pandemic, the March and April clusters of meetings were postponed. The co-conveners of the discussions encourage all WTO Members to participate in order to further enhance the benefits of e-commerce for businesses, consumers and the global economy. Some Members have expressed opposition to these negotiations on the grounds that they are not part of the current negotiating mandate.

Investment facilitation

3.158. Discussions on investment facilitation for development continued during the review period. In November 2019, in the aftermath of the informal Shanghai WTO Ministerial meeting, 98 WTO Members issued a Joint Ministerial Statement, committing to work towards a concrete outcome on Investment Facilitation for Development at MC12, and encouraging all WTO Members to actively participate in this process.100 Other Members oppose discussions on investment facilitation in the WTO, mostly on the grounds that they are not part of the current negotiating mandate.

3.159. In December 2019, participating WTO Members agreed to move into negotiating mode as of March 2020, and requested the Coordinator to prepare a “streamlined text”, aimed at assisting Members to further develop the elements and specific provisions of a multilateral framework on investment facilitation for development.101 At an organizational meeting open to all WTO Members held in February 2020, participating delegations adopted a calendar of meetings and a methodology of work for the period March-May 2020.102 The meetings due to be held in March and April 2020 were cancelled due to the COVID-19 pandemic. By mid-May 2020, negotiating proposals had been submitted by China103, the European Union104, Japan105 and Turkey106. As agreed at the organizational meeting, the Coordinator prepared an “informal consolidated text”, on the basis of the "streamlined text" and written proposals and text contributions submitted by Members thus far. The informal consolidated text is intended to help Members further develop the elements and specific provisions of a multilateral framework on investment facilitation for development in the current negotiating phase of the Structured Discussions – as well as to assist delegations in conducting consultations in their respective capitals and in outreach efforts. The structure, content and wording of this text do not, in any way, prejudge the position or views of any delegation on the issues under negotiation.

Micro, small and medium-sized enterprises (MSMEs)

3.160. The WTO Informal Working Group on MSMEs was established at MC11 and has grown to 91 WTO Members, covering all regions of the world and all levels of development. The Kingdom of

100 WTO document WT/L/1072/Rev.1, 22 November 2019. This joint ministerial statement follows upon the one issued by 70 WTO Members in December 2017 in the margins of MC11, which called for beginning "structured discussions with the aim of developing a multilateral framework on investment facilitation" (document WT/MIN(17)/59, 13 December 2017). 101 WTO document INF/IFD/R/10, 17 January 2020, provides an informal summary of the meeting held on 12 December 2019. The Streamlined Text was issued as document INF/IFD/RD/45, on 17 January 2020. 102 WTO document INF/IFD/R/11 (dated 9 March 2020), provides an informal summary of the meeting held on 27 February 2020. The working methodology is contained in the Annex to document INF/IFD/W/16 (Annotated agenda for the meeting on 27 February 2020). The schedule of meetings for the period up until May 2020 is contained in document INF/IFD/W/15/Rev.1 103 WTO document INF/IFD/RD/48, 27 March 2020. 104 WTO document INF/IFD/RD/46, 27 February 2020. 105 WTO document INF/IFD/RD/47, 25 March 2020. 106 WTO document INF/IFD/RD/49, 31 March 2020.

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Saudi Arabia joined the Group in November 2019. From October 2019 through February 2020, the Group held four formal meetings focused on MC12 and the inclusion of the Group’s recommendations in a ministerial package. Some Members continue to oppose, or do not support, discussions on the issue of MSMEs, noting that it is not part of the original Doha Round discussions, and that focusing on DDA issues should remain the priority. Issues currently under consideration by the Group include: promotion of transparency, including through the TPR process, and of MSME access to trade-related information such as through the ITC Global Trade Helpdesk; MSME-inclusion in the development of trade regulations; support for WTO work with particular relevance to MSMEs, such as trade facilitation, access to trade finance and implementation of the newly adopted decision on the Integrated Database. The Group is also developing a web platform for MSMEs and policymakers linking to relevant trade information, including information on how to trade for MSMEs and studies and best practices for policymakers.

3.161. Recognizing the cross-cutting nature of MSMEs, the Group continues to regularly invite Chairs and secretaries of WTO committees and bodies to brief the Group on MSME-related developments in their respective bodies. The Group works closely with various other IGOs, including the ITC and the ICC, to promote the MSME cause.

3.162. The importance of MSMEs to the global economy has become even more evident during the current COVID-19 pandemic. The Group issued a joint declaration of support for MSMEs, noting the unprecedented impact of the crisis on MSMEs and the need to build MSME resilience. The Group underscored the need to enhance MSME access to regulatory and market information, customs procedures and requirements, and affordable trade finance, among others. Discussions have continued on an informal basis since the COVID-19 outbreak to finetune the Group’s recommendations into the MC12 package and to chart a way forward following the crisis. Members of the Group have been invited to provide information on COVID-19-linked MSME support measures put in place.

Women's economic empowerment

3.163. Launched in December 2017, in the margins of the MC11, the Buenos Aires Declaration on Trade and Women's Economic Empowerment provides a platform for WTO Members to share information and best practices on how they have been integrating gender into their trade policies and strategies. The Declaration, signed by 127 WTO Members and Observers, representing 75% of world trade, seeks to ensure that the WTO works to make trade more inclusive and increases the participation of women in trade. On the other hand, some other Members are of the view that the empowerment of women is not a trade issue.

3.164. The Trade Policy Review Mechanism (TPRM) was identified by the proponents of the Declaration as one of the WTO instruments, which could support Members in gathering and sharing information on their trade policies in support of women's economic empowerment. Indeed, some governments have included in their recent TPR reports information on this issue. Members are using various and complementary trade instruments to integrate gender into their trade policy. Some Members have reviewed and updated their aid-for-trade strategies, including a stronger focus on women’s empowerment. Others are integrating gender chapters in their bilateral trade agreements as well as in their preferential trade agreements. As part of their work on regional integration, they have also focussed on trade and gender issues. At the domestic level, many Members continue to integrate gender issues in their national development strategies and as part of their trade policy objectives.

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4 POLICY DEVELOPMENTS IN TRADE IN SERVICES

4.1. This Section is divided into a first part which outlines new measures affecting trade in services introduced by G20 economies between mid-October 2019 and mid-May 2020. The second part of this Section outlines measures affecting trade in services that have been adopted by governments in response to the COVID-19 pandemic, up to mid-May 2020.

4.2. Overall, and as far as regular measures affecting trade in services introduced by G20 economies between mid-October 2019 and mid-May 2020 are concerned, most are trade-facilitating. However, a significant number of new policies appear to be trade-restrictive. A large proportion of the measures adopted during the period under review relate to telecommunication services, e-commerce, and services supplied online, including different types of tax measures. Like in the previous Report, various governments have introduced new measures in relation to foreign investment and in areas considered strategic or linked to national security. Annex 4 provides additional information on 49 entries from Argentina, Australia, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Russian Federation, Kingdom of Saudi Arabia, Turkey, United Kingdom, and United States.1

4.3. With respect to measures and policies on trade in services adopted by G20 economies in response to the COVID-19 pandemic, up to mid-May 2020, the Secretariat has compiled information on 51 measures, included in Annex 6.

REGULAR MONITORING OF MEASURES AFFECTING TRADE IN SERVICES

Measures affecting supply through commercial presence across various sectors

4.4. New policies have been introduced in relation to foreign investment, which affect the supply of services through commercial presence (mode 3). For example, Japan amended its Foreign Exchange and Foreign Trade Act and now requires overseas investors to seek prior notification from the government before obtaining a 1% or higher stake in a listed Japanese firm engaged in business related to weapons, nuclear energy, semiconductors, railroads and other areas. Prior to the amendments, the threshold was set at 10%.

4.5. The German government adopted amendments to the Foreign Trade and Payments Act that tighten the screening of foreign investment by specifying that all proposed foreign investments will be examined for any "likely adverse impact" on public order, safety or security. Before the modifications, the criterion related to the "actual and serious threat" posed. In France, new measures expand and clarify authorizations for foreign investment in the country. From 1 April, the thresholds for foreign investments by non-EU investors that are subject to prior authorisation have been lowered from 33.33% to 25% of voting rights in a French entity. The new measures also provide for additional sectors of activities that fall under the foreign investment regulations, including print and digital media, and critical technologies.

4.6. In the United States, new regulations have broadened the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) by expanding its review powers over foreign investments in United States businesses. The new regulations implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which aimed to allow CFIUS to better address national security concerns. Under the new regime, the CFIUS has express jurisdiction to review non-controlling investments in critical technology, critical infrastructure and sensitive personal data businesses.

1 The inclusion of any measure in the Annex implies no judgement by the WTO Secretariat on whether a measure, or its intent, is protectionist in nature. Moreover, nothing in the Annex implies any judgement, either direct or indirect, on the consistency of any measure with the provisions of any WTO agreement.

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Measures in relation to communication services, e-commerce, and digitally enabled services

4.7. A number of governments adopted digital services taxes, extended their domestic sales or value-added taxes to services supplied online, including from abroad, or adopted other types of tax measures in relation to communication and other services.2

4.8. In Turkey, the government adopted, in December 2019, a digital services tax (DST) in the form of a 7.5% tax on revenue gained from digital advertising and the sale of any audio, visual or digital content services through digital platforms. Related social media platforms and digital intermediary services are also subject to DST. The tax applies to services deemed to have been provided in Turkey. Companies are subject to the tax if their revenues from the relevant services are at least EUR 750 million globally and TL 20 million in Turkey.

4.9. In Italy, the Budget Law for 2020 introduced a 3% digital service tax on revenues derived from certain digital services provided to users located in Italy. The tax applies to entities that meet certain revenue thresholds, namely a total amount of worldwide revenues equal to or exceeding EUR 750 million and an amount of revenues from qualified digital services in Italy equal to or exceeding EUR 5.5 million. Digital services subject to the DST fall in three categories: digital targeted advertising, intermediation services, and data transmission services. In the United Kingdom, the government introduced the digital services tax, a new 2% tax on the revenues of search engines, social media services and online marketplaces that derive value from UK users. These businesses will be liable to the DST when the group's worldwide revenues from these digital activities exceed GBP 500 million and when more than GBP 25 million of these revenues are derived from UK users.

4.10. On 23 March 2020, the Parliament of India passed an amended national budget, which expands the scope of India's equalization levy to include a new 2% tax on the sale of all goods and services by non-Indian companies over the Internet into India. The tax is levied on non-resident e-commerce operators.

4.11. In Argentina, the government adopted new measures to tax certain transactions involving the acquisition of foreign currency. The tax applies since 23 December 2019 to a number of transactions, including: purchases by Argentine residents abroad through credit, debit or purchase, including cash general withdrawals made outside Argentina, purchases made online through portals or virtual websites in foreign currency, purchases of services rendered abroad through Argentine travel agencies, and purchases of ground, air and maritime passenger services for foreign destinations (except ground passenger services to neighbouring countries). The tax rate is 30%, except for the purchase of digital services, which are subject to a 8% rate.

4.12. Aside from tax measures, various other policy changes have taken place in relation to the communication sector, e-commerce, or digitally-enabled services. For example, in Indonesia, the government issued a new regulation (GR 80), effective since 25 November 2019, that aims to regulate e-commerce activities in the country. The regulation requires all e-commerce businesses to obtain a business licence to carry out these activities. The regulation also applies to entities incorporated and located outside of Indonesia that conduct e-commerce business activities in Indonesia. Foreign suppliers meeting certain thresholds relating to their business activities in Indonesia are required to appoint an Indonesian representative to act on their behalf. GR 80 stipulates that personal data collected by e-commerce companies cannot be transferred offshore, unless the receiving jurisdiction is deemed as having the same level of protection of personal data as Indonesia. Further, e-commerce operators must prioritize the use of an Indonesian domain name, and assist government policies, such as in relation to local content.

4.13. The government of Indonesia also issued, in October 2019, a new regulation (GR 71) on electronic systems and transactions, which allows private sector electronic system operators to transfer, process, and store data outside of Indonesia. Public electronic system operators must still keep their electronic systems and data in Indonesia, unless otherwise provided.

2 Some laws introducing digital services taxes indicated that the taxes would be repealed once an international solution was achieved on the topic.

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4.14. In the United States, an Executive Order issued on 4 April 2020 formalizes, through the establishment of a Committee, the ad hoc working group known as 'Team Telecom' which will assist the Federal Communications Commission in the review of foreign participation in U.S. telecommunication services, with the objective of enhancing national security. Team Telecom will now have 120 days to conduct national security reviews of licence applications.

4.15. In December 2019, the government of France issued a Decree to assist the implementation of a law that aims to preserve national security interests in the context of the launch of the 5G network. Operators will be required to obtain prior approval from the French Prime Minister to operate 5G technology. In Italy, a new law adopted in November 2019 establishes a 'National Cyber Security Perimeter' and modifies the FDI regime in relation to 'special powers', which allow the government to impose conditions on, or veto, certain transactions in strategic sectors. Among other things, the new law specifies the criteria used to assess if a foreign investment is likely to affect national security or public order. The law provides that the assessment should now also consider whether foreign contracts and acquisitions could compromise integrity and security of networks and data passing through these networks.

Financial services

4.16. Governments adopted a number of new measures in relation to financial services during the period under review. This includes instances where governments removed or relaxed foreign equity limits, but also, in other cases, new discriminatory measures.

4.17. For example, in India, the 49% foreign equity limitation for insurance intermediaries (e.g. brokers, agents) has been eliminated from 1 January 2020. In China, the restriction on foreign ownership in joint-venture life insurance companies was removed on 1 January 2020, and foreign ownership can now reach 100%. China also removed the 51% foreign ownership limit in fund management companies, in securities companies, and foreign-invested futures companies.

4.18. In Indonesia, the government adopted a new regulation relaxing foreign equity limits in insurance services. Since 2018, foreign equity ownership in insurance companies has been capped to 80%. Further capital increases had to respect the 80:20 ratio between foreign and domestic shareholders. The new regulation, effective from 20 January 2020, relaxed this rule and clarified the ability of insurers to conduct capital increases and manage their Sharia operations.

Other services sectors

4.19. With respect to health services, telemedicine in India is now regulated by practical guidelines released by the Medical Council of India, through its Board of Governors. They permit practice of Registered Medical Practitioners (RMP) through telemedicine. In Indonesia, the Ministry of Health (MOH) issued a new regulation on telemedicine services that provides official directions on the scope of telemedicine, requirements, rights and obligations, cost, funding and supervision. In addition, the Minister of Health issued a new regulation on the classification and licensing of hospitals, which removes limits on foreign investment in certain types of hospitals.

4.20. In the distribution services sector, Indonesia issued a new regulation on franchising. The measure removes the requirement to use 80% locally-sourced raw materials, equipment or products and instead obliges the franchisor to prioritise the use of local goods and services so long as the goods and services meet the quality set by the franchisor. The new regulation also removes the restriction on the maximum number of outlets. Under the previous framework, a franchisor's maximum number of outlets was 150 for 'modern shop businesses' and 250 for food and beverage businesses. The Kingdom of Saudi Arabia adopted the New Franchise Law, effective from 22 April 2020, that establishes a regulatory framework for relationships between franchisors and franchisees.

4.21. As regards maritime transport, in the European Union, the European Commission prolonged for another four years the regulation outlining the conditions under which liner shipping consortia can provide joint services without infringing EU antitrust rules that prohibit anticompetitive agreements between companies. The Consortia Block Exemption Regulation allows, under certain conditions, liner shipping operators with a combined market share of below 30% to enter into

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cooperation agreements to provide joint liner shipping services. The current Consortia Block Exemption Regulation was due to expire on 25 April 2020.

4.22. In China, foreign education institutions, as well as other organizations or individuals, have been allowed to set up non-compulsory vocational training institutions in pilot free trade zones.

Measures affecting supply through the movement of natural persons

4.23. In the Kingdom of Saudi Arabia, a new measure requires foreign nationals travelling for business to obtain a visa before submitting a Business Visit Visa application.

4.24. In Germany, a new immigration law, effective from March 2020, expands the framework under which qualified professionals from non-EU member States can work in Germany. The measure allows vocationally trained foreign nationals to be employed in Germany in occupations that are not experiencing a skills shortage. It abolishes the requirement to verify the unavailability of German or EU nationals before allowing non-EU citizens to take up a skilled occupation. In France, the French Ministry of Home Affairs implemented changes to its Talent Passport programme, including expedited and streamlined application processing.

4.25. In China, foreign high-level management and technical personnel engaged in technical cooperation and economic and trade activities may now apply for a visa or residence permit valid for two to five years.

Air services agreements

4.26. Table 4.1 presents information on ASA (ASAs) concluded or amended during the period under review by G20 economies. These include both new ASAs and revisions of existing ones. As far as can be assessed from available sources, the vast majority of these ASAs provides for more liberal access conditions than was previously the case.

Table 4.1 Air Transport Agreements3 including G20 economies concluded or amended during the reporting period (October 2019-May 2020)

Date of Parties Source signature Jamaica South 08.10.2019 https://jis.gov.jm/jamaica-and-south-africa-sign-air-service- Africa agreement/ Solomon Turkey 11.10.2019 https://www.solomontimes.com/news/govt-signs-air-services- Islands agreement-with-turkey-and-uae/9406 United Kazakhstan 6.01.2020 Washington Trade Daily, 7 January 2020 States Turkey Serbia 10.2019 https://www.exyuaviation.com/2019/10/serbia-turkey-approve- rigid-air.html Morocco Mexico 2.11.2019 https://aaco.org/media-center/news/aeropolitical/morocco-and- mexico-sign-mou-to-establish-direct-air-service Barbados Germany 11.2019 https://www.eturbonews.com/380104/european-expantion-new- direct-flight-from-germany-to-barbados/ India Switzerland 12.2019 https://www.traveldailymedia.com/india-swiss-air-service-pact-to- be-amended/ Pakistan Saudi 01.2020 https://www.thenews.com.pk/print/599048-pakistan-saudi-arabia- Arabia revise-air-service-agreement Bahamas United 27.01.2020 https://ewnews.com/bahamas-and-united-states-sign-into-force- States historic-air-service-agreement Bangladesh Japan 03.02.2020 https://www.newagebd.net/article/98579/dhaka-tokyo-air-service- deal-revised United Kenya 02.2020 https://www.the-star.co.ke/news/2020-02-06-us-kenya-add-all- States cargo-rights-to-air-transport-agreement/

Source: WTO Secretariat.

3 The term "Air Transport Agreements" is used here to refer to Air Services Agreements, Memoranda of Understanding, Exchange of Notes, and other such relevant instruments.

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MEASURES AFFECTING TRADE IN SERVICES ADOPTED IN THE CONTEXT OF COVID-194

4.27. As part of its Trade Monitoring exercise, the Secretariat has compiled information on 51 measures affecting trade in services that have been adopted by G20 economies in response to the COVID-19 pandemic, up to mid-May 2020. The pandemic has had a strong overall impact on services sectors and services trade, and G20 economies have adopted a wide array of measures related to specific services sectors and modes of supply in response to the crisis, including to alleviate the impact of social distancing measures adopted for public health reasons.

4.28. Most measures adopted appear to be trade-facilitating. This includes measures to ensure that more telecommunications capacity is made available to operators; measures to facilitate access by the population to Internet and mobile data and to online education and health services; measures to provide – and in certain instances reintroduce – flexibility for suppliers of transport services and facilitate the continued supply of cross-border transport of freight; and lighter requirements imposed on banks (liquidity and capital requirements) to ensure that they are well positioned to continue to provide credit to the economy. At the same time, various governments have taken measures to tighten foreign investment regimes, thereby affecting supply under mode 3 (commercial presence). A number of the measures taken by governments in response to the crisis were announced as temporary, and two have already been withdrawn, as indicated in annex 6.

4.29. Annex 6 provides additional information on the measures adopted by G20 economies. The bulk of measures listed relate to financial services, telecommunication services, transport services, health services or apply across various sectors. Measures have been compiled for Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russian Federation, South Africa, Turkey, United Kingdom, and United States.

Measures affecting supply through commercial presence

4.30. Various G20 economies have introduced measures tightening foreign investment regimes to prevent foreign takeovers in sectors considered of strategic importance, thereby affecting supply under mode 3 in various sectors, including telecommunication, health or transport services.

4.31. On 25 March 2020, the European Commission issued new guidelines for screening foreign direct investment in companies and critical assets located in the European Union. The measure aims to respond to the increased potential risk to strategic industries as a result of the economic shock resulting from COVID-19. Among other things, the new guidelines call on member States to make full use of existing FDI screening mechanisms and to take fully into account the risks to critical health infrastructures, supply of critical inputs, and other critical sectors.

4.32. On 29 March, Australia announced temporary changes to the foreign investment review framework in order safeguard national interest during the crisis. During this period, all proposed foreign investments subject to the Foreign Acquisitions and Takeovers Act 1975 will require approval, regardless of value or the nature of the foreign investor. This change is achieved by reducing the monetary screening thresholds to AUD 0. In Italy, on 9 April 2020, the government widened its foreign investment screening powers to new sectors, such as food security, health, banks and insurance companies, financial infrastructure, as well as to acquisitions of 10% or more of shares in local companies.

4 The information in this Section, and in Annex 6, was compiled by the WTO Secretariat and is an informal situation report and an attempt to provide transparency with respect to measures affecting trade in services taken in the context of the COVID-19 crisis. It does not pass judgment on or question the right of WTO Members to take such actions. The Secretariat has not sought to determine or indicate whether the measures listed in the table in Annex 6 have trade-restrictive or trade-facilitating effects. The information is not exhaustive and does not include information on general support measures relating to services. Further, the objective is not to list all COVID-19 related measures taken by governments around the world to limit movement, nor all the measures taken to ease the impact of border restrictions or other limits on movement. The measures listed in Annex 6 cover the period up to 15 May 2020. A consistent feature of the trade and trade-related measures taken in response to the COVID-19 crisis is the frequent changes, adjustments and occasional roll-back of such measures to reflect the evolving situation. The updated lists of measures implemented in the context of the current pandemic are available on the COVID-19 page of the WTO website: https://www.wto.org/english/tratop_e/covid19_e/covid19_e.htm#measures.

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4.33. The government of Canada issued a Policy Statement, on 18 April, indicating that it would subject certain foreign investments to enhanced scrutiny under the Investment Canada Act. Foreign direct investments of any value in Canadian businesses that are related to public health or involved in the supply of critical goods and services to Canadians or the government are now to be scrutinized with particular attention. The government also subjected all foreign investments by state-owned investors, regardless of their value, or private investors assessed as being closely tied to or subject to direction from foreign governments, to enhanced scrutiny under the Act.

4.34. In India, the government amended its foreign direct investment (FDI) policy in order to curb takeovers or acquisitions of Indian companies as a result of the pandemic. The amendment provides that an entity of a country that shares a land border with India - or where the beneficial owner of an investment into India is situated in or is a citizen of any such country - can invest only with prior government permission.

4.35. In France, the Minister for the Economy and Finance announced on 29 April 2020 an update to the screening procedure for foreign direct investment in the context of the current health and economic crisis. The new measure includes biotechnologies in the list of critical technologies that are likely to be subject to screening. Also, the threshold for triggering a screening procedure is lowered from 25% to 10% of voting rights in the acquired company.

4.36. For its part, China adopted new policies aiming to facilitate and retain foreign investment. In February 2020, the government issued a Circular requiring local departments of commerce to, among other things, help foreign-invested enterprises to resume normal production and operation and strengthen services for large foreign-invested projects.

Measures in telecommunication services and e-commerce

4.37. G20 economies have adopted various measures in relation to telecommunication services. In both developed and developing economies, operators suspended data limits and boosted capacity in response to the pandemic at no additional cost, and many governments temporarily issued additional spectrum to operators, or took other measures to facilitate the operation of telecommunication suppliers (e.g., India, South Africa, United States). A number of measures have also adopted to ensure access to telecommunication services. For instance, in the United States, the Federal Communication Commission launched the "Keep Americans Connected Initiative" to ensure that Americans did not lose their broadband or telephone connectivity in the context of COVID-19.

4.38. In reaction to the crisis, Indonesia introduced a tax on e-commerce activities carried out by foreign suppliers with a significant economic presence in the country. As part of the COVID-19 emergency bill signed by the President on 31 March 2020, a new regulation requires foreign suppliers of digital services to register and charge the value added tax. The measure also provides for the imposition of a tax on e-commerce activities carried out by foreign-based suppliers with a significant economic presence in Indonesia. Significant economic presence will be further determined by authorities, taking into account such factors as gross revenue, sales, and active users in Indonesia.

Transport services measures

4.39. Mobility-related measures and border restrictions imposed by G20 governments for public health considerations have naturally affected transport services significantly, in particular cross- border transport services. In a second-phase response to the crisis, several governments have revised some of their travel and border measures, for example to ensure that the movement of 'essential' foreign services workers, including transport workers, was not overly burdened.

4.40. In air transport services, G20 economies have responded to the crisis in various ways. Several regulators have suspended "use it or lose it" slot requirements that require airlines to continue operating slots for a minimum share of the time in order to keep their entitlements for the following travel season. Regulatory requirements were also eased in other areas, such as to provide flexibility to airlines and flight crews.

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4.41. For instance, in Mexico, the Federal Agency for Civil Aviation extended by three months the validity of permits, licenses and certificates for technical personnel. In the United Kingdom, the Civil Aviation Authority issued a number of regulatory exemptions to support the sector including extending the validity periods of licences, certificates and ratings. On 30 March 2020, the European Union suspended its rule requiring air carriers to operate slots for at least 80 percent of the time to keep the entitlement in the next equivalent season for the whole summer season. For its part, the Russian Federation exempted flight crews from the 14-day quarantine.

4.42. With respect to maritime transport, G20 economies have adopted various port measures since the start of the outbreak. From February 2020, all major ports adopted a 14-day quarantine period for vessels arriving from, or transiting through, affected countries. Many ports have ceased calls for passenger ships. While cargo vessels may still call and operate at most ports, they are subject to enhanced maritime health declarations and screening requirements. In addition, strict restrictions have been imposed on crew disembarkation, shore leave, and substitution.5

4.43. As regards road transport, most countries have suspended or largely reduced cross-border passenger transport services. Borders have generally remained open for freight transportation, even though drivers are subject to border controls for quarantine purposes. In order to mitigate disruptions and facilitate freight transport, a number of governments adopted different types of relief measures. For instance, in the European Union, member States have adopted such measures as the suspension of weekend traffic bans for heavy vehicles, as well as a temporary and limited relaxation of the enforcement of driving and rest times for the drivers of vehicles transporting goods.6 On 16 March 2020, the European Commission issued guidelines for border measures to protect health and keep goods and essential services available. The guidelines set out principles for an integrated approach to an effective border management to protect health while preserving the integrity of the internal market.

Health services measures

4.44. In Brazil, the government adopted a new measure in March that permits, on an exceptional and temporary basis, the use of telemedicine for medical services, including for medical consultations and digital medicine prescriptions. In France, the government relaxed the rules on the use of telemedicine services. Until 31 May 2020, all persons affected by COVID-19 (and other patients under certain circumstances) could benefit from telemedicine services even in the absence of a pre-existing relationship between the healthcare provider and the patient.

4.45. In South Africa, the Health Professions Council issued guidance on the application of telemedicine during the COVID-19 pandemic, aiming to facilitate the use of video or phone calls by doctors and therapists to treat patients. Previously, such services were essentially limited to cases where there was an already established practitioner-patient relationship.

4.46. In the United States, the Federal Communications Commission (FCC) voted to adopt a USD 200 million telehealth program to support healthcare providers responding to the coronavirus pandemic. The program aims to help healthcare providers purchase telecommunications, broadband connectivity, and devices necessary for providing telehealth services. The FCC also launched a Connected Care Pilot Program, which will provide up to USD 100 million of support from the Universal Service Fund to help defray health care providers' costs of providing connected care services.

4.47. Measures have also been taken to facilitate the temporary movement, or prolonged stay, of foreign health workers. For example, in the United Kingdom, since 31 March 2020, visas for

5 In view of increased port restrictions, on 21 February 2020, the International Maritime Organization (IMO) and the World Health Organization (WHO) issued a Joint Statement5 on the Response to the COVID-19 outbreak. On 27 March, the IMO circulated to its Member States a preliminary list of recommendations for governments and relevant national authorities on the facilitation of maritime trade during the COVID-19 pandemic, proposed by a broad cross-section of global industry associations representing the maritime transportation sector. The purpose of this list is to assist governments in avoiding the introduction of obstacles to ship and port operations, including the movement of seafarers and marine personnel when implementing policies and measures to address COVID-19. Recommendations cover measures to provide ship access to berths in ports, facilitate crew changes and port operation and ensure public health. 6 As the European Union member States are gradually easing lockdowns, the relaxations of driving and rest time rules ended on 31 May 2020.

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doctors, nurses and paramedical personnel with visas due to expire before 1 October 2020 are automatically extended for one year, without the imposition of fees. In Australia, the government introduced new measures in response to COVID-19 to allow some temporary work visa holders employed in critical sectors, including health, aged and disability care and childcare, to remain in Australia and continue working until it is safe and practicable for them to return.

Financial services measures

4.48. In view of the key role of the financial services sector in supporting all other economic activities by stabilizing markets and ensuring the flow of credits and payments, central banks and financial regulators around the world have proactively intervened. Interventions included coordinated actions by central banks to ensure availability of liquidity in US dollars for international transactions, and a range of monetary and regulatory measures by governments to alleviate the economic and financial stability impact in their jurisdictions.

4.49. Monetary authorities have been active and creative with different monetary instruments, including the lowering of key/base interest rates, quantitative easing, and reductions of reserve requirements. In addition to the reduction of counter-cyclical capital buffers, regulatory authorities in various jurisdictions (e.g. Brazil, Canada, India and Republic of Korea) have loosened requirements regarding liquidity and capital requirements, to ensure that banks are well positioned to continue to provide credit to the economy. Bans on the short-selling of selected stocks have been imposed by certain jurisdictions with a view to stabilizing capital markets (e.g. Indonesia). Some authorities have eased loan-loss provisions to allow banks to extend loan maturities for firms and households or allowed for forbearance of non-performing loans, while others have relaxed the cap on foreign currency forward positions.

EFFECTS OF THE COVID-19 PANDEMIC ON TRADE IN SERVICES

4.50. This sub-section aims to provide information on the early impact of the COVID-19 pandemic on trade in services in different sectors and modes of supply.7

4.51. Services sectors have been heavily affected by the COVID-19 outbreak. Given the sector's role in providing inputs for other economic activities, including facilitating supply chains and trade in goods, disruptions in services supply are having a broad economic and trade impact. Furthermore, since services account for most of women’s employment globally and a large share of micro, small and medium-sized enterprise (MSME) activity, the disruption in services supply also impacts social and economic inclusiveness.

4.52. Drops in demand and supply have strongly impacted services trade, though the type and extent of the impact varies by sector and mode of supply. Services that rely on physical proximity between suppliers and consumers have been most impacted by mobility restrictions and social distancing measures imposed for public health reasons. While direct contact can sometimes be substituted by remote supply, but this is not necessarily the case in all services sectors or countries. Sectors such as distribution (especially retailing services), tourism and passenger transport have been heavily affected. Mobility-related measures have created significant disruptions in air, maritime and land transportation, with severe repercussions on goods trade and supply chains.

4.53. As a result, trade in certain modes of supply has experienced severe downturns. Supply under mode 2 (consumption abroad), which is particularly relevant for tourism, has been paralysed. Travel restrictions have also severely limited mode 4, which involves the temporary movement of natural persons across borders. The pandemic is also negatively affecting the supply of services through mode 3 (commercial presence), both due to its impact on existing operations in foreign markets and its influence on decisions concerning the set-up of new establishments.8

7 Measures adopted in the context of the crisis that affect trade in services are discussed in section COVID-19 related measures affecting trade in services, and listed in Annex 6. This section draws from the Secretariat's Information Note, 'Trade in Services in the Context of COVID-19', which was made available on the WTO website on 29 May 2020. 8 UNCTAD projected that the COVID-19 pandemic could bring global foreign direct investment flows to their lowest levels since the 2008-09 financial crisis: Viewed

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4.54. The decline in merchandise trade resulting from the economic slowdown is contributing to a decrease in related services trade, such as the international maritime transport of freight. Furthermore, mobility restrictions on people are also affecting cross-border freight transport services, and thereby trade in goods. For example, strict restrictions on maritime crew disembarkation and substitution have led to shipping disruptions, with significant repercussions on goods trade and the viability of supply chains.

4.55. As highlighted in the discussion on specific sectors in the following sub-sections, the crisis is focussing greater attention toward online supply in sectors such as retail, health, education, telecommunication or audiovisual services. The crisis is accelerating companies' efforts to expand their online operations and is creating new consumer habits and behaviours that are likely to contribute to a profound and long-term shift towards online services and the digital economy. In the future, increased supply of services through digital networks can strongly impact trade, leading to increased supply through mode 1 (cross-border supply). The crisis is also underscoring the importance of transport, financial, distribution and logistics services in facilitating trade and economic growth.

Tourism and travel-related services

4.56. The global tourism and travel sector has arguably been the hardest hit by the crisis so far, given that mobility restrictions and border closures halted the movement of tourists abroad. The sector largely relies on mode 2 trade. Domestic travel restrictions and "work-from-home" requirements continue to further impact the sector by limiting domestic tourism activities, which are relevant to supplies through commercial presence (mode 3).

4.57. In March 2020, the Organisation for Economic Co-operation and Development (OECD) stated that preliminary estimates pointed to a 45% decline in international tourism in 2020. This could rise to 70% if recovery cannot begin until September.9 The World Tourism Organization (UNWTO) estimated on 27 March 2020 that international tourist arrivals could decline by 20 to 30% in 2020. This could translate into a loss of USD 300 to USD 450 billion in international tourism receipts (exports) – almost one-third of the USD 1.5 trillion generated globally in 2019 and equivalent to between five and seven years' lost growth.10 The World Travel & Tourism Council (WTTC) estimated on 26 March 2020 that the number of travel and tourism jobs at immediate risk could reach 100 million. In May, the UNWTO stated that current scenarios pointed to a potential decline of 58 to 78% in international tourist arrivals for the year, depending on containment measures and the duration of travel restrictions, with 100 to 120 million direct tourism jobs at risk.11

4.58. The sector's decline has broad economic consequences given its overall economic importance for many countries and regions. According to the WTTC, direct, indirect and induced tourism impact in 2019 contributed USD 8.9 trillion to global GDP (10.3%) and 330 million jobs (1 in 10).12 For some economies, in particular smaller ones, tourism accounts not only for the largest share of total exports, but also for a significant share of GDP (e.g. 67% for Seychelles, 62% for St Kitts and Nevis, and 48% for Vanuatu). According to balance-of-payments statistics, travel represented 25% of world commercial services exports in 2018, and accounted for 32% of services exports of developing countries, and 50% in the case of least-developed countries (LDCs).

Distribution services

4.59. Distribution services have been heavily affected by the COVID-19 pandemic, as social distancing measures in several countries have involved the closure of shops considered non-

at: https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=2299&Sitemap_x0020_Taxonomy=UNCT AD%20Home;#6; 9 Viewed at: http://www.oecd.org/about/Secretary-General/extraordinary-g20-tourism-ministerial- virtual-meeting-april-2020.htm 10 Viewed at: https://www.unwto.org/news/international-tourism-arrivals-could-fall-in-2020. 11 Viewed at:https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international- tourism and https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020- 05/Barometer_May2020_full.pdf 12 Viewed at:https://wttc.org/Research/Economic-Impact.

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essential (typically excluding grocery stores and pharmacies). Naturally, this has significantly impacted supply through mode 3 (commercial presence), which is significant in this sector.

4.60. For example, in January/February 2020, at the peak of the outbreak in China, data published by the National Bureau of Statistics (NBS) found that retail trade in China had declined by 20.5% compared to the previous year.13 Even though sales in physical stores increased significantly from mid-March in China as restrictions were eased, consumers remained cautious and sales in physical stores did not recover to their pre-crisis levels. Similar trends may be expected in other economies, with variations depending on the impact of the pandemic and social distancing policies adopted. In the United Kingdom, for instance, total retail sales declined by 18% in April, as many stores closed during the lockdown.14 In different economies, a substantial number of retailers have filed for bankruptcy or closed stores.15

4.61. The closure of many retailers of non-essential goods and other efforts to ensure social distancing have led to increased online sales by wholesalers and retailers, particularly of healthcare and household products, including groceries. Facing reduced visitors, several brick-and- mortar outlets are therefore also shifting to or expanding their online presence and their delivery and pickup services. In China in early 2020, online sales of certain products that traditionally had limited online penetration, such as various daily essential products, increased between 50% and 150% compared to the previous year.16 However, reduced household spending as a result of the economic slowdown and uncertainty are negatively impacting sales of non-essential goods, both through online platforms and in physical stores. Online sales of discretionary products (e.g., alcohol) remained at similar levels, while sales of non-essential products declined.

4.62. In the United States, online retail sales during the first quarter of 2020 were up 14.5% from the previous year. Online sales increased significantly from mid-March, with some studies suggesting an increase of approximately 50% in April compared to early March.17 In Saudi Arabia, local online retailer BinDawood communicated in late March that its average sales on a 10-day basis had increased by 200%, while in Indonesia in April, online mall Blibli reported increases in sales of a number of household products, including groceries.18

Telecommunication, ICT and audiovisual services

4.63. With more people currently participating in both remote work and schooling, and more heavily dependent on the internet for entertainment and social contact, the demand for information and communication technology (ICT) services and related infrastructure has been unprecedented and unanticipated. In March 2020, Facebook reported that in countries hard hit by the pandemic, use of its online messaging service was up more than 50%, and voice and video traffic doubled.19 In Italy, Facebook saw a 70% surge in overall usage and a 1,000% increase in time spent on group calls, yet reported reduced global advertising revenue.20 Thailand reported

13 This is consistent with analysis from the International Monetary Fund (IMF): https://blogs.imf.org/2020/03/20/blunting-the-impact-and-hard-choices-early-lessons-from-china/. 14 Online sales as a proportion of total retail sales jumped to a record 30.7%. See https://www.bbc.com/news/business-52766856. 15 Viewed at: https://www.forbes.com/sites/pamdanziger/2020/04/03/retail-companies-on-death- watch-is-growing-fast-as-covid-19-puts-non-essential-retailers-on-life-support/#3d1ff74725ea. 16 Viewed at:https://www.bain.com/insights/chinas-consumer-industry-prepares-for-the-coronavirus- legacy/. 17 Viewed at:https://www.digitalcommerce360.com/2020/05/20/ecommerce-during-coronavirus- pandemic-in-charts/. 18 Viewed at:https://oxfordbusinessgroup.com/news/saudi-arabia-turns-e-commerce-during-covid-19- outbreak and https://oxfordbusinessgroup.com/news/e-commerce-provides-economic-boost-indonesia- shoppers-migrate-online-during-covid-19- pandemic?utm_source=feed&utm_medium=rss&utm_campaign=eus_all_all. 19 Viewed at:https://about.fb.com/news/2020/03/keeping-our-apps-stable-during-covid-19/. 20 Viewed at:https://www.mobileworldlive.com/apps/news-apps/facebook-ad-revenue-falls-victim-to- covid- 19/?ID=a6g1r000001RURqAAO&JobID=411117&utm_source=sfmc&utm_medium=email&utm_campaign=MWL _20200325&utm_content=https%3A%2F%2Fwww.mobileworldlive.com%2Fapps%2Fnews-apps%2Ffacebook- ad-revenue-falls-victim-to-covid-19%2F.

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growth of 828% and 215% in the number of users of Zoom and Skype, respectively.21 And Vodacom Group recorded a 40% rise in data traffic in South Africa during the lockdown.22

4.64. Social distancing measures adopted by governments have boosted demand for audiovisual content, for both entertainment and information purposes. For example, according to some estimates, online media streaming in the United States increased by 85% in the first three weeks of March, compared to the same period in 2019.23 Since, in many countries, a large proportion of the audiovisual content consumed is foreign, the increase in demand is associated with greater trade in the sector. However, the measures taken to respond to the crisis are also resulting in interruptions in the production of new films, series and other content.

4.65. In the longer term, increased online buying and other activities may translate into higher earnings. With the easing of lockdown measures, telecommunications and ICT companies are now beginning to reopen their walk-in customer outlets. However, suppliers cannot yet gauge whether these increases will become permanent. Meanwhile, the crisis poses difficulties for suppliers relying on advertising revenue; the global advertising market is expected to decline significantly in 2020 as companies reduce spending as a result of the pandemic and subsequent economic slowdown.24

Transport services

4.66. The pandemic has had a dramatic effect on the air transport service sector. In May, the International Civil Aviation Organization (ICAO) estimated that, for the entire year 2020, world air passenger traffic could drop by as much as two-thirds from what had been initially forecast, leading airline revenues to fall potentially by as much as USD 244 to USD 420 billion. Europe and the Asia-Pacific region would be hardest-hit in terms of international capacity and revenue impacts, followed by North America. Similarly, ICAO expects the most substantial reduction in passenger numbers to be in Europe, especially during its peak summer travel season, while the sharpest drop in domestic passenger traffic is forecast for the Asia-Pacific region, followed by North America.25

4.67. Airports Council International (ACI), the airport industry body, forecast in May that flight cancellations and airport closures would result in a decline of more than 4.6 billion passengers globally for 2020, and airport revenue losses for the year would exceed USD 45 billion.26 In addition, as around 35% of global trade (by value) travels by air, the collapse in passenger flights has had a significant impact on air cargo capacity. The latest available figures (from April 2020) from the International Air Transport Association (IATA) reveal that belly capacity for international air cargo shrank by 43.7% in March 2020 compared to the previous year.27 Although this was partially offset by a 6.2% increase in capacity through expanded use of freighter aircraft, including the use of idle passenger aircraft for all-cargo operations, there is at present insufficient capacity to meet the remaining demand for air freight transport, even though the latter has also declined.28 As a result, air freight rates have increased significantly – by an estimated 20 to 30% across the Asia-Pacific region, and by as much as 50% for some routes. Transit times have also nearly doubled, as shipments need to wait their turn.29

21 Viewed at: https://techsauce.co/en/pr-news/dtac-work-from-home-covid-19. 22 Viewed at:https://www.mobileworldlive.com/featured-content/top-three/vodacom-data-traffic- surges-during-lockdown/. 23 Viewed at:https://thehill.com/homenews/media/490423-nielsen-records-85-percent-increase-in- americans-streaming-video. 24 Viewed at:https://www.omdia.com/resources/product-content/global-advertising-market-set-for- tough-2020-as-covid-19-impact-hits-global-economy and https://www.digitalcommerce360.com/2020/04/30/facebook-signals-online-advertising-to-take-a-big-hit/ 25 Viewed at:https://www.icao.int/sustainability/Documents/COVID- 19/ICAO%20COVID%202020%2005%2025%20Economic%20Impact.pdf. 26 Viewed at:https://aci.aero/news/2020/05/05/predicted-global-impact-of-covid-19-on-airport- industry-escalates/. 27 Viewed at: https://go.updates.iata.org/webmail/123902/1142448399/72a3a9b684836680e5223fada07076a577d47f56b9d e5c849b06dd66c7de445a. 28 See, for example, https://www.wired.com/story/airlines-use-empty-passenger-jets-ease-cargo- crunch/. 29 Financial Times, "Passenger planes are the new ships", 14 April 2020.

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4.68. With lockdown and quarantine measures implemented in most countries since the outbreak of COVID-19, the maritime transport sector too is under increased pressure. Both container ship calls and their cumulative capacity plunged from January to March 2020. At the same time, the ratio of missed port calls (i.e. scheduled vessel calls that do not occur) has risen sharply. For instance, port operators in China reported that volume for container shipping decreased by between 20 and 40% between 20 January and 10 February 2020 compared to the same period in 2019.30 Global container trade volumes declined by 8.6% in February 2020 compared to the same month of 2019.31 In February 2020, 46% of scheduled departures on the major route from Asia to Northern Europe had been cancelled,32 and the port of Los Angeles, the largest US container port, announced that cargo volumes had fallen by approximately 25% compared to the prior year.33 The slowdown in port calls is occurring worldwide. Shipping companies have been reducing scheduled capacity, and the proportion of idle container ship tonnage is greater now than during the global financial crisis of 2008. This translates into higher costs for shipping and problems for supply chains. There is also a shortage of workers at the ports to move containers, and a shortage of truck drivers to move goods, due to lockdown and quarantine.

4.69. The COVID-19 pandemic has also seriously disrupted land transport worldwide. Most countries have suspended or largely reduced cross-border passenger transport services. While borders remained open for freight transportation, drivers have been subject to border controls for quarantine purposes, which has led to a slowdown of logistics flows. For example, in order to combat the pandemic, European countries in the Schengen area temporarily reintroduced border controls since mid-March 2020. Most road and rail cross-border passenger transport has been suspended since then. While the reintroduction of border controls does not apply to cross-border freight transport, it has nevertheless resulted in considerable disruption.34Since 1 June a gradual easing of border controls has taken place.

Health Services

4.70. The COVID-19 crisis stimulated a surge in the use of telemedicine services. In China, for example, it substantially accelerated the growth of online medical platforms, with some experiencing three-digit growth rates between December 2019 and January 2020. The number of users of online medical platforms in Asian economies (e.g. Australia, Indonesia, Singapore) has grown rapidly in the past few months.35 Some providers are also expanding their activities to enable patients to benefit from services, e.g. second opinions, sourced abroad. The use of telemedicine has also increased in Europe and North America, where the COVID-19 outbreak prompted calls for making more extensive use of telemedicine. Some jurisdictions have reviewed laws and regulations to facilitate such services, mainly on a provisional basis.36

Education Services

4.71. The closure of schools and higher education institutions in response to the pandemic has had significant social and economic consequences; UNESCO estimated that during the peak of the crisis, school and university closures in 190 countries had impacted over 90% of the world's student population.37 These closures have also affected the provision of education services worldwide, causing the demand for online learning to skyrocket. The pandemic will also have a significant economic impact on the higher education sector, including as a result of a potential decline in the number of students. It has been estimated that, in some countries, enrollments for

30 Viewed at: https://www.hellenicshippingnews.com/what-does-coronavirus-mean-for-container- shipping/. 31 Viewed at: https://www.itf-oecd.org/sites/default/files/global-container-shipping-covid-19.pdf. 32 "Coronavirus impact raises red flags at European ports", Journal of Commerce, 19 February 2020. 33 "Port of Los Angeles Sees Coronavirus Impact Sharply Reducing Imports", Wall Street Journal, 25 February 2020. 34 Viewed at: https://www.iru.org/resources/newsroom/covid-19-urgent-eu-action-needed-road- borders-drivers-and-financial-support. 35 Viewed at: https://www.bain.com/insights/covid-19-accelerates-the-adoption-of-telemedicine-in-asia- pacific-countries/. 36 Viewed, for example, at: https://www.service-public.fr/particuliers/actualites/A13924 and https://ahpcsa.co.za/wp-content/uploads/2020/03/GUIDELINES_TELEHEALTH- TELEMEDICINE_1_24Mar2020.pdf. 37 Viewed at: https://en.unesco.org/covid19/educationresponse.

- 99 - the next academic year could drop by 15%, including a 25% decline in the number of international students.

4.72. As systems massively move to e-learning, the digital divide in relation to connectivity, access to devices and skill levels is taking on even more significance. Looking forward, the current crisis is likely to have a significant and lasting impact on the provision of education and, thereby, on international trade in educational services, notably by increasing the demand and supply of online education.

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5 POLICY DEVELOPMENTS IN TRADE AND INTELLECTUAL PROPERTY

5.1. During the review period, G20 economies continued to fine-tune their intellectual property (IP) domestic frameworks, as shown in the submissions for the trade monitoring exercise and the notifications to the TRIPS Council. In the wake of the COVID-19 pandemic, a number of G20 members have also implemented specific IP-related measures aimed at facilitating the development and dissemination of COVID-19 related health technologies, as well as at relaxing procedural requirements and extending deadlines for administrative IP matters (see below). Those government measures have been complemented by voluntary action by IP right holders, in particular the sharing of IPRs, in order to support R&D and equal access to relevant health technologies.1

5.2. At the international level, Canada acceded to the Patent Law Treaty;2 the European Union acceded to the Geneva Act of the Lisbon Agreement on Appellations of Origin and Geographical Indications;3 and, the Kingdom of Saudi Arabia acceded to the Vienna Agreement Establishing an International Classification of the Figurative Elements of Marks and to the Locarno Agreement Establishing an International Classification for Industrial Designs4; and, India acceded to the Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks, the Vienna Agreement establishing an International Classification of the Figurative Elements of Marks and the Locarno Agreement Establishing an International Classification for Industrial Designs.5

Bilateral and Regional Agreements

5.3. During the review period, the parties to the United States-Mexico-Canada Agreement (USMCA) completed their respective domestic ratification procedures, thus paving the way for its entry into force on 1 July 2020;6 the United States and China reached Phase 1 of an Economic and Trade Agreement;7 and the European Union and Mexico announced the conclusion of the negotiations of their updated trade agreement.8 These agreements contain detailed IP provisions. Reportedly, substantive IP issues were under consideration by G20 economies during the negotiations in the framework of the Pacific Alliance9 and between MERCOSUR and the European Union.10

5.4. The Saudi Authority for Intellectual Property signed a patent prosecution highway agreement with the United States Patent and Trademark Office, a Memorandum of Cooperation with the Japanese Patent Office, and a Memorandum of Understanding with the World Intellectual Property Organization (WIPO) to establish a national centre for training.11 The Indian Patent Office initiated a three-year patent prosecution highway pilot programme the Japan Patent Office.12

Domestic Legislation and Administrative Developments

5.5. Domestically, G20 members are working to streamline IP into their economies. The relationship between IP and trade continued to develop and diversify as they continued to modernize and fine-tune their IP legislation and administration (Box 5.1).

1 Viewed, for example at: https://opencovidpledge.org/; https://www.medtronic.com/us-en/e/open- files.html?cmpid=vanity_url_medtronic_com_openventilator_Corp_US_Covid19_FY20; https://wellcome.ac.uk/press-release/publishers-make-coronavirus-covid-19-content-freely-available-and- reusable; and https://www.sanofi.com/en/media-room/press-releases/2020/2020-04-14-13-00-00. 2 Submission by Canada for the WTO Trade Monitoring Report. 3 WTO document IP/N/1/EU/35. 4 Submission by the Kingdom of Saudi Arabia to the WTO Trade Monitoring Report. 5 Submission by India to the WTO Monitoring Report. 6 Viewed at: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/april/usmca- enter-force-july-1-after-united-states-takes-final-procedural-steps-implementation 7 Viewed at: https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china/phase- one-trade-agreement 8 Viewed at: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_756 9 Viewed at: https://alianzapacifico.net/inicio-en-chile-la-tercera-ronda-de-negociaciones-con-los- candidatos-a-estado-asociado. 10 Viewed at: https://trade.ec.europa.eu/doclib/press/index.cfm?id=2048 11 Submission by the Kingdom of Saudi Arabia to the WTO Trade Monitoring Report. 12 Submission by India to the WTO Trade Monitoring Report.

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Box 5.1 Domestic Legislation and Administrative Developments

Australiaa Between October and December 2019, public consultations were held on the amendments to the industrial design system. In February 2020, the Intellectual Property Laws Amendment Act 2020 entered into force, phasing out the innovation patent system and introducing an objects clause into the Patent Act 1990. Canadab In March 2020, amendments to the Copyright Act and the Trademarks Act came into force. Indiac In April 2020, the Startups Intellectual Property Protection Scheme was extended further for a period of 3 years, to facilitate patent, design and trademark applications. Applications can also be made through the Innovation Support Centre (TISC) network established in association with WIPO. Indonesiad In December 2019, the Minister of Law and Human Rights issued Regulation No.30, which contains detailed procedures for the granting of compulsory licenses. Kingdom of Saudi Arabiae Between October 2019 and April 2020, the national IP administration has been revamped, as authority on copyrights, trademarks patents, layout designs of integrated circuits, plant varieties and industrial designs was transferred to the Saudi Authority for Intellectual Property and hearings on IP-related civil and criminal cases were transferred to commercial courts. In January 2020, the IP Respect Council was created with representatives from the public and private sectors.

a Submission by Australia for the WTO Trade Monitoring Report. b Submission by Canada for the WTO Trade Monitoring Report. c Submission by India for the WTO Trade Monitoring Report. d Submission by Indonesia for the WTO Trade Monitoring Report. e Submission by the Kingdom of Saudi Arabia for the WTO Trade Monitoring Report.

Source: WTO Secretariat.

COVID-19 Related Measures

5.6. IP measures undertaken by G20 economies range from those aimed to facilitate innovation or access with respect to COVID-19-related health technologies to measures, which ease certain procedural requirements or deadlines for administrative matters.

5.7. Some G20 economies have endeavoured to make patent information or product standards related to combatting COVID-19 more easily available and/or introduced measures, which may facilitate the grant of government use or compulsory licenses for patented technology relevant to addressing the pandemic. These substantive measures are shown in Table 5.1 below.

Table 5.1 Intellectual Property COVID-19-Related Measures

Member Measure Source Date Argentina Argentina published a bulletin, developed in https://www.argentina.gob.ar/noti 26/04/2020 collaboration with PROSUR member countries, of cias/boletin-prosur-covid-19 certain health technologies related to COVID-19. Australia The Trade Mark COVID-19 Helpline supports and https://www.ipaustralia.gov.au/tra 20/05/2020 assists small to medium Australian businesses that de-marks/managing-your-trade- are having to quickly adapt to changing mark/introducing-trade-mark- circumstances due to COVID-19, in exploring use of covid-19-helpline their trade mark/s on different goods and services to those currently covered under the respective trade mark application or registration. Brazil The National Institute of Industrial Property (INPI, in http://www.inpi.gov.br/menu- 06/04/2020 Portuguese) published patent landscapes on patents servicos/patente/tecnologias-para- or patent applications filed at INPI on diagnostic covid-19/ESTUDOS methods for the new coronavirus and other respiratory viruses, ventilators and Remdesivir. This project was a part of PROSUR (Sistema de Cooperación sobre aspectos de información operacional y de Propiedad Industrial, in Spanish), which published a bulletin of certain health technologies related to COVID-19.

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Member Measure Source Date Brazil Under Ordinance (Portaria, in Portuguese) No. http://www.inpi.gov.br/noticias/in 07/04/2020 149/2020, the Brazilian National Institute of pi-vai-acelerar-exame-de- Industrial Property will prioritize the examination of patentes-relativas-ao-combate-do- patent applications related to innovations that can be covid-19/view used to fight COVID-19 from 7 April 2020 to 30 June 2021. Canada Bill C-13 (An Act respecting certain measures in https://www.parl.ca/DocumentVie Entry into response to COVID-19) received Royal Assent. Bill C- wer/en/43-1/bill/C-13/royal- force 13 amends Canada's Patent Act to empower the assent 25/03/2020 Commissioner of Patents, on the application of the Minister of Health, to authorize the Government of Notified to the TRIPS Council in Canada or another specified person to supply a WTO document IP/N/1/CAN/30. patented invention to the extent necessary to respond to a public health emergency that is a matter of national concern. These amendments include safeguards to protect the interests of patent holders; for example, ensuring that a patent holder receives adequate remuneration for the use of the patent, placing limitations on the duration of the authorization, providing the patent owner with notice of the authorization, and ensuring that the patent owner has recourse to the courts if any person authorized acts outside the scope of the authorization. China The China Patent information Center launched a https://ncp.patentstar.cn/en February 2020 freely accessible database for various coronavirus- related patents. European Union The European Committee for Standardization and the https://ec.europa.eu/commission/ 20/03/2020 European Committee for Electrotechnical presscorner/detail/en/ip_20_502 Standardization, in collaboration with their members, agreed to make freely available certain copyrighted European standards for certain medical devices and personal protective equipment. Germany An amendment to the German Act on the Prevention https://www.bgbl.de/xaver/bgbl/s Entry into and Control of Infectious Diseases in Humans grants tart.xav#__bgbl__%2F%2F*%5B force the Parliament the competence to determine the %40attr_id%3D%27bgbl120s0587 27/03/2020 existence of an 'epidemic situation of national .pdf%27%5D__1588850035945 significance'. For grounds of public interest or national security, the Federal Ministry for Health is authorized to order the competent authority to allow the use of patent-protected inventions to ensure the supply of various health technologies, including medicines, diagnostics and personal protection equipment. Korea, Republic The Korean Intellectual Property Office has made https://www.kipo.go.kr/ncov/inde 24/04/2020 of available patent information on technology relating to x_e.html the diagnosis and treatment of COVID-19, including patent analysis and trend reports. United States The USPTO has launched a website called Patents 4 https://content.govdelivery.com/a 04/05/2020 Partnerships, which lists patents and published ccounts/USPTO/bulletins/28971ab applications relating to COVID-19 that the owners have indicated are available for licensing, along with contact information. United States The United States Patent and Trademark Office https://www.uspto.gov/about- 08/05/2020 launched the COVID-19 Prioritized Patent us/news-updates/uspto- Examination Pilot Program under which it will grant announces-covid-19-prioritized- requests for prioritized patent examination for examination-pilot-program-small- applicants which qualify for small and micro-entity and?utm_campaign=subscriptionc status with respect to applications that cover a enter&utm_content=&utm_mediu product or process that is subject to U.S. Food and m=email&utm_name=&utm_sourc Drug Administration (FDA) approval for use in the e=govdelivery&utm_term= prevention and/or treatment of COVID-19.

Source: WTO Secretariat. Submissions to the WTO Trade Monitoring Report.

5.8. A number of G20 members have taken measures to ease procedural requirements, deadlines or fees with respect to administrative IP matters, as shown in Table 5.2 below. Generally, such measures appear to have been taken to account for any difficulties caused by COVID-19, which applicants, rightsholders or other stakeholders may encounter.13The WIPO has launched an online platform, "COVID-19 IP Policy Tracker", which provides information on the measures adopted in IP Offices, amongst others, in response to the pandemic. 14

13 Viewed at: https://www.ic.gc.ca/eic/site/cipointernet-internetopic.nsf/eng/wr00050.html. 14 Viewed at: https://www.wipo.int/covid19-policy-tracker/#/covid19-policy-tracker/ipo-operations.

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Table 5.2 Intellectual Property COVID-19-Related Administrative Measures

Member Measure Source Date Argentina In accordance with INPI Resolution No. 34/20, the https://back.argentina.gob.ar/sites 12/04/2020 National Institute of Industrial Property has /default/files/p-034-20.pdf suspended all substantive procedures before it, https://www.argentina.gob.ar/inpi/ including suspending certain deadlines. institucional/legislacion https://www.argentina.gob.ar/inpi

Australia Streamlined extensions of time for COVID-19 https://www.ipaustralia.gov.au/fre 22/04/2020 to related disruptions will be continued until 30 June e-streamlined-extensions-time- 30/06/2020 2020. covid-19-disruptions (to be Its continuation is being regularly reviewed reviewed) considering the severity of the COVID-19 pandemic disruptions. At least one week’s notice will be provided before it is ended.

China The China National Intellectual Property http://english.sipo.gov.cn/news/off China Administration has issued Notice No. 350 clarifying icialinformation/1147236.htm relief measures for parties exceeding the time limits for handling affairs in relation to patents, trademarks and layout-designs of integrated circuits as a result of the COVID-19.

European The European Union Intellectual Property Office has https://euipo.europa.eu/ohimporta 16/03/2020 Union extended certain deadlines for trademark and l/en/web/guest/news/- design matters. /action/view/5644669 https://euipo.europa.eu/ohimporta l/en/home

India The India Controller General of Patents, Designs & http://www.ipindia.nic.in/newsdeta 19/03/2020 Trade Marks has extended certain deadlines for il.htm?681/ patent, design and trademark matters. http://www.ipindia.nic.in/index.ht m

Italy The Italian Patent and Trademark Office has https://uibm.mise.gov.it/index.php 08/04/2020 extended the deadlines for administrative /en/202-news-english/2036408- proceedings for trademarks, patents, designs and covid-19-extension-of-the- models. deadline-for-administrative- proceedings-to-15-may https://uibm.mise.gov.it/index.php /en/

2020/03/27 اﻟﻣﻠﻛﯾﺔ-/Saudi The Saudi Authority for Intellectual Property has https://www.saip.gov.sa/en /اﻟﻔﻛرﯾﺔ-ﺗﻌﻠن-ﻋن-ﺗﻣدﯾد-اﻟﻣﮭل-ال .Arabia, extended certain statutory deadlines for all IPRs Kingdom of https://www.saip.gov.sa/en/

United The United Kingdom Intellectual Property Office has https://www.gov.uk/government/n 24/03/2020 Kingdom extended certain deadlines for patent, SPC, ews/coronavirus-important- trademark and designs matters. update-on-ipo-services https://www.gov.uk/government/o rganisations/intellectual-property- office

United The USPTO considers the effects of coronavirus to https://www.uspto.gov/sites/defau 16/03/2020 States be an "extraordinary situation" within the meaning lt/files/documents/coronavirus_reli of 37 CFR 1.183 and 37 CFR 2.146 for affected ef_ognotice_03162020.pdf patent and trademark applicants, patentees, re- examination parties, and trademark owners. Therefore, the USPTO is waiving petition fees in certain situations for customers impacted by the coronavirus. Details about eligible applications and re-examination proceedings are provided in the link.

United The United States Patent and Trademark Office has https://www.uspto.gov/about- 27/03/2020 States extended certain deadlines for patent and us/news-updates/uspto-extends- trademark matters. certain-patent-and-trademark- deadlines-june-1

https://www.uspto.gov/

United The USPTO is waiving the requirement of 37 CFR https://www.uspto.gov/sites/defau 30/03/2020 States 1.4(e)(1) and (2) for original handwritten signature lt/files/documents/85%20FR%201 for certain correspondence with the Office of 7502.pdf Enrollment and Discipline and certain payments by credit card.

United Until further notice, the USPTO will accept plant https://www.uspto.gov/about- 06/05/2020 States patent applications and follow-on documents us/uspto-allow-filing-plant-patent- through the USPTO patent electronic filing systems applications-and-correspondence- (EFS-Web or Patent Center). patent-electronic-filing

Source: WTO Secretariat. Submissions to the WTO Trade Monitoring Report.

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TRIPS Council

5.9. During the review period, the TRIPS Council met on two occasions, (17-18 October 2019 and 6 February 2020). At the October 2019 meeting, G20 economies were actively involved presenting their reports for the annual review of technical cooperation under Article 67;15 exchanging views at the annual review of the Special Compulsory Licensing System; and introducing their reports16 during the first part of the annual review of incentives for technology transfer to LDCs, as per Article 66.2. G20 members joined other delegations and agreed to extend the period for acceptance of the Protocol Amending the TRIPS Agreement until end-2021; and, a draft decision was submitted to the General Council for adoption at its meeting in December 2019.17

5.10. At the February 2020 meeting, G20 members participated in the conclusion of the annual review of incentives for technology transfer to LDCs. Mexico presented a communication on a draft Codex Alimentarius Standard, which prohibited "cross-promotion" in product labelling across product categories (e.g., infant formula, follow-up formula, and formula for medical purposes) and could impact intellectual property rights, specifically trademark rights under the TRIPS Agreement.18

5.11. On both occasions, several G20 economies shared their national experiences and engaged in policy discussions on two themes, namely IP and Innovation and IP and the Public Interest. Specific agenda items concerned "Public-Private Collaborations in Innovation - IP Commercialization";19 "R&D Costs and Pricing of Medicines and Health Technologies";20 "Making MSMEs more Competitive through Trademarks";21 and "The WTO TRIPS Agreement and the Copyright Three Step Test".22

5.12. During the review period, nine G20 members23 notified legislative measures under Article 63.2. They introduced their new or amended laws during the Council's meetings, providing insights into developments in different areas, for instance: copyrights; trademarks; patents; trade secrets; enforcement; and, competition. Three G20 economies submitted information on their contact points for the exchange of information and cooperation on trade in infringing goods, under Article 69.24

TRIPS-Related Discussions in Trade Policy Reviews

5.13. The trade policies of the European Union and Australia included discussions and information exchanges on a wide range of IP issues with a bearing on trade policy.

15 WTO document IP/C/W/655 and addenda. 16 WTO document IP/C/W/656 and addenda. 17 WTO document WT/L/1081. 18 WTO document IP/C/W/660 and IP/C/M/94/Add.1. 19 WTO document IP/C/W/657. 20 WTO document IP/C/W/659. 21 WTO document IP/C/W/661 and addenda. 22 WTO document IP/C/W/663. 23 Canada; Brazil; China; European Union; Japan; Republic of Korea; Mexico; Kingdom of Saudi Arabia; and the Russian Federation. 24 India; Republic of Korea; and the Kingdom of Saudi Arabia.

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ANNEX 1 - MEASURES FACILITATING TRADE1 (MID-OCTOBER 2019 TO MID-MAY 2020)

Confirmed information2

Measure Source/Date Status Argentina Elimination of the requirement of certificate of origin for Permanent Delegation of Effective 26 statistical purposes Argentina to the WTO (22 May November 2020) and Resolución No. 2019 1288/2019, Ministerio de Producción y Trabajo (22 November 2019) Temporary elimination of export duties (derechos de Permanent Delegation of Effective 10 exportación) for raw hides and skins, leather (NCM 4101; Argentina to the WTO (22 May December 4102; 4103; 4104), under an export quota 2020) and Decreto No. 847/2019 2019 to 31 (DCTO-2019-847-APN-PTE- December Desgravación) (6 December 2021 2019) Petroleum oils and oils obtained from bituminous mineral Permanent Delegation of Effective 11 eliminated from the list requiring non-automatic import Argentina to the WTO (22 May March 2020 licensing (4 tariff lines at 8-digit level, NCM 2709.00.10; 2020) and Disposición No. 3/2020 2709.00.90; 2710.12.59; 2710.19.21) Subsecretaría de Política y Gestión Comercial - Ministerio de Desarrollo Productivo (11 March 2020) Brazil Temporary elimination of import tariffs on certain Permanent Delegation of Brazil to Effective: see vaccines for humans (hepatite B), under an import quota the WTO (20 May 2020), Secint individual of 30 million doses (effective 16 October 2019); on Portaria No. 468/2019 (27 June dates in certain vaccines for humans (difteria, tétano e pertussis), 2019) measure under an import quota of 10 million doses (effective 1 December 2019); on certain vaccines for humans (virus do papiloma humano recombinante), under an import quota of 18 million doses (effective 1 December 2019); on certain vaccines for humans (hepatite A), under an import quota of 10 million doses (effective 24 October 2019); and on certain vaccines for humans (raiva), under an import quota of 4 million doses (effective 16 October 2019) Reduction of import tariffs on certain products, e.g. Permanent Delegation of Brazil to Effective 1 inorganic chemicals, organic or inorganic compounds of the WTO (27 May 2020), Camex January 2020 precious metals, of rare-earth metals, of radioactive Resolution Nos. 4/2019 (24 elements or of isotopes; organic chemicals; plastics and October 2019) and 25/2019 (30 articles thereof; paper and paperboard; machinery and December 2019) mechanical appliances; electrical machinery and equipment; tubular metal needles; skis; and travelling circuses and travelling menageries (96 tariff lines at 8- digit level, in HS Chapters 28; 29; 39; 48; 84; 85; 90; 95). Elimination of import tariff (from 10%) on light- emitting diodes (NCM 8541.40.16) Reduction of import tariffs (to 2%) on parts and Permanent Delegation of Brazil to Effective 2 accessories of motor vehicles (not produced in Mercosur) the WTO (20 May 2020), Camex January 2020 (NCM Chapters 39; 40; 68; 69; 70; 73; 74; 76; 83; 84; Resolution Nos. 23/2019 (30 85; 87; 90; 94), through the "ex-out" regime December 2019), 8/2020 (30 (mechanism designed to temporarily reduce import tariffs January 2020), 27/2020 (1 April on capital goods and informatics and telecommunication 2020), and 42/2020 (4 May 2020) equipment not locally produced)

1 The inclusion of any measure in this Annex implies no judgement by the WTO Secretariat, either direct or indirect, on the consistency of any measure referred to with the provisions of any WTO agreement. 2 This Section includes information which has either been provided by the Member concerned or has been confirmed at the request of the Secretariat.

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Measure Source/Date Status Temporary reduction of import tariffs (to 2%) on Permanent Delegation of Brazil to Effective: see p-phenylenediamine, diaminotoluenes, and their the WTO (20 May 2020), Camex individual derivatives; salts thereof (NCM 2921.51.33), under an Resolution Nos. 5/2019 and dates in import quota of 10,440 tonnes (effective 29 October 2019 6/2019 (23 October 2019), measure to 28 October 2020); on self-adhesive plates, sheets, 10/2019 (12 November 2019), film, foil, tape, strip and other flat shapes, of plastic, 11/2019 (19 November 2019), whether or not in rolls (NCM 3919.90.90), under an and 17/2019 (28 November 2019) import quota of 200 tonnes (effective 29 October 2019 to and Secex Portaria Nos. 42/2019 28 October 2020); on 6-hexanelactam (epsilon- (25 October 2019), 44/2019 (18 caprolactam) (NCM 2933.71.00), under an import quota November 2019), 46/2019, of 667 tonnes (effective 29 October 2019 to 13 January 47/2019 (25 November 2019) and 2020); on ethylene dichloride (ISO) (1,2-dichloroethane) 50/2019 (4 December 2019) (NCM 2903.15.00), under an import quota of 400,000 tonnes (effective 26 November 2019 to 25 November 2020); on high tenacity yarn of polyester, whether or not textured (NCM 5402.20.00), under an import quota of 688 tonnes (effective 26 November 2019 to 25 November 2020); on certain acrylic polymers in primary forms (NCM 3906.90.49), under an import quota of 800 tonnes (effective 7 December 2019 to 6 December 2020); on jute (NCM 5303.10.10), under an import quota of 7,000 tonnes (effective 28 December 2019 to 27 December 2020). Temporary elimination of import tariffs on wheat and meslin (NCM 1001.19.00; 1001.99.00), under an import quota of 750,000 tonnes (effective 18 November 2019 to 17 November 2020); and on certain vaccines for humans (NCM 3002.20.21), under an import quota of 20 million doses (effective 26 November 2019 to 25 November 2020) Reduction of import tariffs on certain vessels for the Permanent Delegation of Brazil to Effective 18 transport of goods (NCM 8901.90.00) the WTO (20 May 2020), Camex November Resolution No. 10/2019 (12 2019 November 2019) Temporary elimination of import tariffs on 1,500 capital Camex Resolution Nos. 2/2019 Effective until goods tariff lines, and 141 informatics and and 3/2019 (22 October 2019), 31 December telecommunications goods tariff lines (NCM Chapters 82; 14/2019 and 15/2019 (19 2021 84; 85; 86; 87; 90), through the "ex-out" regime November 2019), 29/2019 and (mechanism designed to temporarily reduce import tariffs 30/2019 (30 December 2019), on capital goods and informatics and telecommunications 10/2020 and 11/2020 (30 equipment not locally produced) January 2020), 14/2020 and 15/2020 (19 February 2020); 29/2020 30/2020 (1 April 2020), 39/2020 and 40/2020 (4 May 2020) Temporary reduction of import tariffs (to 2%) on soda lye Permanent Delegation of Brazil to Effective: see or liquid soda (NCM 2815.12.00), under an import quota the WTO (20 May 2020), Camex individual of 88,000 tonnes (effective 28 December 2019 to 27 Resolution Nos. 27/2019 and dates in December 2020); on disodium sulphate (NCM 28/2019 (30 December 2019; and measure 2833.11.10), under an import quota of 910,000 tonnes Secex Portaria Nos. 1/2020, (effective 31 January 2020 to 30 January 2021); on 4/2020 and 5/2020 (16 January "generator circuit breaker systems" and "plug and switch 2020) systems" (NCM 8537.20.90), under an import quota of 340 units (effective 16 January 2020 to 15 January 2021); on poly(ethylene terephthalate) with a viscosity number of 78 ml/g or higher (NCM 3907.61.00), under an import quota of 10,000 tonnes (effective 30 December 2019 to 29 December 2020); and on certain yarn of polyester (NCM 5402.47.10), under an import quota of 2,200 tonnes (effective 2 January 2020 to 1 January 2021) Extension of the temporary reduction of import tariffs (to Permanent Delegation of Brazil to Effective: see 2%) on certain sulphates (NCM 2833.29.60), under an the WTO (20 May 2020), Camex individual import quota of 25,000 tonnes (effective 17 January 2020 Resolution No. 32/2019 (30 dates in to 30 June 2020); on certain pigments (containing 82% December 2019; and Secex measure or more by weight of titanium dioxide) (NCM Portaria Nos. 2/2020 and 3/2020 3206.11.10), under an import quota of 4,836 tonnes (16 January 2020) (effective 17 January 2020 to 30 June 2020); on polyamide-6 and 6-6 (NCM 3908.10.24), under an import quota of 7,100 tonnes (effective 17 January 2020 to 30

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Measure Source/Date Status June 2020); and on certain uncoated paper and paperboard (NCM 4805.92.90), under an import quota of 15,993 tonnes (effective 17 January 2020 to 30 June 2020). Extension of the temporary reduction of import tariffs (to 6%) on pigments and preparations based on titanium dioxide (NCM 3206.11.10), under an import quota of 50,000 tonnes (effective 17 January 2020 to 30 June 2020). Extension of the temporary elimination of import tariffs on unwrought aluminium, not alloyed (NCM 7601.10.00), under an import quota of 150,000 tonnes (effective 17 January 2020 to 30 June 2020); on p-Xylene (NCM 2902.43.00), under an import quota of 145,000 tonnes (effective 17 January 2020 to 30 June 2020); and on sardines (NCM 0303.53.00), under an import quota of 110,000 tonnes (effective 9 February 2020 to 31 December 2020) Temporary reduction of import tariffs (from 35% to 2%) Permanent Delegation of Brazil to Effective: see on certain tanker semi-trailers (NCM 8716.39.00), under the WTO (20 May 2020), Camex individual an import quota of 35 units (effective 16 January 2020 to Resolution No. 26/2019 (30 dates in 15 January 2021); (from 26% to 2%) on certain pile December 2019; and Secex measure fabrics of man-made fibres (NCM 6001.92.00), under an Portaria Nos. 6/2020, 7/2020 and import quota of 55,000 tonnes (effective 16 January 2020 8/2020 (16 January 2020) to 15 January 2021); (from 14% to 2%) on printing ink (NCM 3215.19.00), under an import quota of 860 tonnes (effective 16 January 2020 to 15 January 2021); on polycarbonates (NCM 3907.40.90), under an import quota of 35,040 tonnes (effective 16 January 2020 to 15 January 2021); and on black printing ink (NCM 3215.11.00), under an import quota of 545 tonnes (effective 23 January 2020 to 22 January 2021); and (from 12% to 2%) on not backed aluminium foil, rolled but not further worked (NCM 7607.11.90), under an import quota of 2,137 tonnes (effective 1 February 2020 to 31 January 2021). Temporary elimination (from 8%) on certain pharmaceutical products (NCM 3004.90.69) (effective 16 January 2020) China On 15 December 2019, extension of the suspension of Permanent Delegation of China to Effective 15 the imposition of additional tariffs on imports of certain the WTO (25 May 2020) and State December vehicles, and parts and accessories thereof (211 tariff Council Tariff Commission 2019 lines at 8-digit level, in HS Chapter 87), from the United Announcement on suspending the States (originally effective from 1 January 2019 to 31 imposition of tariffs on March 2019, and extended on 1 April 2019) automobiles and parts and components thereof originated from the United States (Tariff Commission Announcement 2019/7). Viewed at:http://www.gov.cn/xinwen/201 9-12/15/content_5461332.htm Imposition of interim tariffs resulting in temporary Permanent Delegation of China to Effective 1 reduction of import tariffs on certain products (HS the WTO (25 May 2020) and January 2020 Chapters 1; 2; 3; 4; 5; 8; 12; 13; 14; 15; 18; 19; 20; Customs Tariff Commission of the to 31 21; 22; 23; 24; 25; 27; 28; 29; 30; 31; 32; 33; 34; 35; State Council, Circular on December 37; 38; 39; 40; 41; 43; 44; 45; 48; 49; 52; 53; 56; 61; adjustments to tariffs including 2020 62; 63; 68; 69; 70; 71; 72; 74; 75; 76; 79; 81; 82; 84; import interim tariff rates in 2020 85; 87; 90; 91; 92; 96) (SCTC [2019] No. 50). Viewed at: http://gss.mof.gov.cn/gzdt/zheng cefabu/201912/P0201912276231 09204309.pdf VAT rebate rates increased (to 13%) on exports of 1,084 Permanent Delegation of China to Effective 20 products (HS Chapters 15; 28; 29; 32; 33; 34; 38; 39; the WTO (25 May 2020) and March 2020 40; 42; 43; 44; 48; 67; 68; 69; 70; 71; 72; 73; 74; 75; Ministry of Finance General 78; 80; 81; 82; 83; 96); and (to 9%) on 380 products Administration of Taxation - (HS Chapters 1; 2; 3; 4; 5; 6; 7; 8; 9; 12; 13; 15; 16; Announcement No. 15/2020. 18; 19; 20; 21; 23; 38; 51; 53; 71) Viewed at: http://www.chinatax.gov.cn/china tax/n810341/n810755/c5146338/ content.html

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Measure Source/Date Status India Elimination of import tariffs on certain products, e.g. Permanent Delegation of India to Effective 2 purebred breeding horses; (from 10%) very low sulphur the WTO (26 May 2020) February 2020 fuel oil, and specified parts of microphones; and (from 7.5%) on polyester liquid crystal polymers (LCPs) for use in the manufacture of connectors; and micro fuse bases. Reduction of import tariffs (from 10% to 7.5%) on calcined pet coke; (from 10% to 5%) on calendared plastic sheet for use in manufacturing of smart cards, newsprint, uncoated paper used in the manufacture of newspapers, and light-weight coated paper; (from 12.5% to 7.5%) on platinum and palladium for the manufacture of precious metal chemicals and precious metal catalyst; and (from 12.5% to 11.85%) on spent catalyst or ash containing precious metals for recovery of precious metal (HS 0101.21.00; 27; 3907.99.00; 8518.90.00; 8538; 2712.12.10; 2713.12.90; 3920.10.99; 4801; 48; 4810; 7110) Amendments introduced to Notification No. 11/2018- Permanent Delegation of India to Effective 2 Customs, Ministry of Finance (Department of Revenue), the WTO (26 May 2020) February 2020 resulting in the elimination (from 10%) of the Special Welfare Surcharge on almonds, shelled; walnuts, in shell; walnuts, shelled; frozen orange juice; not frozen orange juices; marble, travertine, ecaussine and other calcareous building stone slabs (HS 0802.12.00; 0802.31.00; 0802.32.00; 2009.11.00; 2009.12.00; 2009.19.00; 2515.12.20; 6802.10.00; 6802.21.10; 6802.21.20; 6802.21.90; 6802.91.00; 6802.92.00) New goods included in the list of products exempted from Permanent Delegation of India to Effective 2 the Special Welfare Surcharge (HS Chapters 84; 85; 90) the WTO (26 May 2020) February 2020 Imports of certain medical and surgical instruments and Permanent Delegation of India to Effective 1 apparatus (HS 9018; 9019; 9020; 9021; 9022) exempted the WTO (26 May 2020) and April 2020 from the "health cess" Ministry of Finance - Department of Revenue - Notification No. 8/2020-Customs (2 February 2020) Japan Elimination of import tariffs on 1,4- Permanent Delegation of Japan to Effective 1 cyclohexanedimethanol (HS 2906.19); on 1,1,3,5- the WTO (22 May 2020) April 2020 tetramethylpiperidine-1-iumhydroxide (HS 2933.39); on igniters, used in manufacturing parts of motor vehicles (HS 3603.00); on mixed alkylbenzenes (HS 3817.00); and on leaver lace (HS 5804.21) Russian Federation (for Eurasian Economic Union) Extension of the temporary elimination of import tariffs Permanent Delegation of the Effective 1 on certain cocoa and cocoa preparations (HS 1803.10.00; Russian Federation to the WTO January 2020 1804.00.00) (27 May 2020) to 31 December 2022 Temporary elimination of import tariffs (from 10%) on Permanent Delegation of the Effective: see vanadium (effective 1 January 2020 to 31 December Russian Federation to the WTO individual 2021); (from 5%) on surimi (effective 26 March 2020 to (27 May 2020) dates in 30 April 2023); on stamping foils (effective 6 March 2020 measure (HS to 31 August 2022); and on vanadium oxides and 8483.40.23.09 hydroxides (effective 22 February 2020 to 31 December ; 2020); (from 14%) on rods of optical glass (effective 23 8536.50.80.00 January 2020 to 31 December 2020); on terephthalic ; acids (14 April 2020 to 31 December 2021); on 8545.20.00.00 accessories for the production of handheld power tools excluded) (effective 8 May 2020 to 30 June 2022); on electric cars (effective 4 May 2020 to 31 December 2021); on polyurethane and epoxy coatings for the production of optical fibre (effective 14 April 2020 to 31 December 2020); and on certain kinds of shellfish and krill meat (effective 26 March 2020 to 1 April 2023) (HS 0304.99.11; 3212.10.00; 2825.30.00; 7002.20.10; 2917.36.00; 8536.50.80; 8545.20.00; 8483.40.23; 8703.80.00; 3907.30.00; 3909.50.90; 8112.92.92; 0307.43.38; 0307.43.90; 0307.52.90; 1605.40.00;

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Measure Source/Date Status 1605.53.90) Creation of a new tariff line, "certain LED lamps" (HS Permanent Delegation of the Effective 2 8539.50.00.01; 8539.50.00.02; 8539.50.00.09) resulting Russian Federation to the WTO February 2020 in the temporary elimination of import tariffs (27 May 2020) to 1 January 2021 Turkey Elimination of import tariffs (from 2%) on certain Permanent Delegation of Turkey Effective 1 products of pig iron; and (from 2.7%) on certain products to the WTO (24 April 2020) January 2020 of ferro-alloys (HS 7201.10.11; 7201.10.30; 7202.11) Elimination of import tariffs (from 29%) on inulin used for Permanent Delegation of Turkey Effective: see the production of medical and nutritional products to the WTO (3 June 2020) individual (effective 1 January 2020); (from 135%) on oligofructose dates in used for the production of medical and nutritional measure products (effective 1 January 2020); (from 46.8%) on certain fats used in the production of infant formula (effective 1 January 2020); and (from 31.5%) on molasses used for the production of yeast (effective 3 April 2020) (HS 1108.20; 1702.90.95; 1517.90.99; 1703.10; 1703.90), within the scope of end-use regulation

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ANNEX 2 - TRADE REMEDIES1

(MID-OCTOBER 2019 TO MID-MAY 2020)

Confirmed information2

Measure Source/Date Status Argentina Termination on 30 October 2019 of anti-dumping WTO document G/ADP/N/335/ARG, 1 duties on imports of tanks, casks, drums, cans, boxes May 2020 and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment, of a capacity of 200 to 230 litres (NCM 7310.10.90) from Chile (investigation initiated on 1 June 2012 and definitive duty imposed on 29 November 2013) Termination on 19 November 2019 of anti-dumping WTO document G/ADP/N/335/ARG, 1 duties on imports of conveyor or transmission belts May 2020 or belting, of vulcanized rubber reinforced only with textile materials (NCM 4010.12.00) from China (investigation initiated on 1 June 2012 and definitive duty imposed on 29 November 2013) Initiation on 3 February 2020 of anti-dumping Permanent Delegation of Argentina investigation on imports of lawn mowers with electric to the WTO (22 May 2020) and motor (HS 8467.29.99; 8433.11.00) from China Resolución No. 7/2020 – (RESOL- 2020-7-APN-SIECYGCE#MDP), Ministerio de Desarrollo Productivo (30 January 2020) Initiation on 3 March 2020 of anti-dumping Permanent Delegation of Argentina investigation on imports of measuring tapes (metros to the WTO (22 May 2020) and de cinta) (HS 9017.80.10) from India Resolución No. 23/2020 – (RESOL- 2020-23-APN-SIECYGCE#MDP), Ministerio de Desarrollo Productivo - Secretaría de Industria, Economía del Conocimiento y Gestión Comercial Externa (28 February 2020) Termination on 6 March 2020 of anti-dumping duties Permanent Delegation of Argentina on imports of paper and paperboard, coated on one to the WTO (22 May 2020) and or both sides with kaolin (China clay) or other Resolución No. 79/2020, Ministerio inorganic substances, with or without a blinder, and de Desarrollo Productivo (4 March with no other coating, whether or not surface- 2020) coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size (NCM 4810.13.89; 4810.13.90; 4810.19.89; 4810.19.90) from Austria, China, Finland and the United States (investigation initiated on 15 December 2010. Provisional and definitive duties imposed on 20 March 2012 and 14 June 2012, respectively) Termination on 6 March 2020 of anti-dumping duties Permanent Delegation of Argentina on imports of coated paper and paperboard (NCM to the WTO (22 May 2020) and 4810.29.90) from China (investigation initiated on 7 Resolución No. 79/2020, Ministerio December 2016 and definitive duty imposed on 20 de Desarrollo Productivo (4 March July 2017) 2020)

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Measure Source/Date Status Australia On 9 December 2019, anti-dumping investigation on WTO document G/ADP/N/335/AUS, imports of steel reinforcing bar (HS 7213.10.00; 20 February 2020 7214.20.00; 7227.90.10; 7227.90.90; 7228.30.10; 7228.30.90; 7228.60.10) from Turkey resumed (investigation originally initiated on 16 November 2018 and provisional duty imposed on 15 January 2019. Investigation terminated on 20 June 2019) On 9 December 2019, countervailing investigation on WTO document G/SCM/N/356/AUS, imports of steel reinforcing bar (HS 7213.10.00; 21 February 2020 7214.20.00; 7227.90.10; 7227.90.90; 7228.30.10; 7228.30.90; 7228.60.10) from Turkey resumed (investigation originally initiated on 16 November 2018 and terminated on 20 June 2019) Termination on 10 December 2019 of anti-dumping WTO document G/ADP/N/335/AUS, duties on imports of power transformers (HS 20 February 2020 8504.22.00; 8504.23.00) from Thailand (investigation initiated on 29 July 2013 and definitive duty imposed on 10 December 2014) Termination on 31 January 2020 (without measure) Permanent Delegation of Australia to of anti-dumping investigation on imports of power the WTO (25 May 2020) and Anti- transformers (HS 8504.22.00; 8504.23.00) from Dumping Notice No. 2020/10 (31 China (investigation initiated on 18 March 2019) January 2020) Initiation on 17 February 2020 of anti-dumping Permanent Delegation of Australia to investigation on imports of aluminium micro- the WTO (25 May 2020) and Anti- extrusions (HS 7604.10.00; 7604.21.00; Dumping Notice No. 2020/13 (17 7604.29.00; 7608.10.00; 7608.20.00; 7610.10.00; February 2020) 7610.90.00) from China Initiation on 24 February 2020 of anti-dumping Permanent Delegation of Australia to investigation on imports of mill finish aluminium the WTO (25 May 2020) and Anti- extrusions (HS 7604.10.00; 7604.21.00; Dumping Notice No. 2020/18 (24 7604.29.00; 7608.10.00; 7608.20.00; 7610.10.00; February 2020) 7610.90.00) from Malaysia

Initiation on 24 February 2020 of anti-dumping Permanent Delegation of Australia to investigation on imports of surface finish aluminium the WTO (25 May 2020) and Anti- extrusions (HS 7604.10.00; 7604.21.00; Dumping Notice No. 2020/19 (24 7604.29.00; 7608.10.00; 7608.20.00; 7610.10.00; February 2020) 7610.90.00) from Malaysia Termination on 28 February 2020 (without measure) Permanent Delegation of Australia to of anti-dumping investigation on imports of high- the WTO (25 May 2020) and Anti- density polyethylene "HDPE" (HS 3901.20.00; Dumping Notice No. 2020/22 (28 3901.90.00) from Korea, Rep. of; Singapore; February 2020) Thailand and the United States (initiated on 24 June 2019) Initiation on 30 March 2020 of anti-dumping Permanent Delegation of Australia to investigation on imports of kraft paperboard (HS the WTO (25 May 2020) and Anti- 4810.39.00; 4810.1; 4810.2) from the United States Dumping Notice No. 2020/32 (30 March 2020) Initiation on 31 March 2020 of anti-dumping Permanent Delegation of Australia to investigation on imports of precision pipe and tube the WTO (25 May 2020) and Anti- steel (HS 7306.30.00; 7306.50.00; 7306.61.00) Dumping Notice No. 2020/30 (25 from China; Korea, Rep. of; Chinese Taipei and Viet March 2020) Nam

Initiation on 31 March 2020 of countervailing Permanent Delegation of Australia to investigation on imports of precision pipe and tube the WTO (25 May 2020) and Anti- steel (HS 7306.30.00; 7306.50.00; 7306.61.00) Dumping Notice No. 2020/30 (25 from China and Viet Nam March 2020)

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Measure Source/Date Status Brazil Termination on 30 October 2019 of anti-dumping WTO document G/ADP/N/335/BRA, duties on imports of seamless steel chrome alloyed 7 April 2020 tubes (NCM 7304.51.19; 7304.59.11; 7304.59.19) from China (investigation initiated on 18 November 2013. Provisional and definitive duties imposed on 14 April and 30 October 2014, respectively) On 1 November 2019, temporary suspension of anti- WTO document G/ADP/N/335/BRA, dumping duties on imports of ethanolamine, grades 7 April 2020 MEA (monoethanolamine) and TEA (triethanolamine) (NCM 2922.11.00; 2922.13.10; 3824.90.89) from Germany (investigation initiated on 10 May 2012 and definitive duty imposed on 4 November 2013) On 8 November 2019, temporary suspension of WTO document G/ADP/N/335/BRA, anti-dumping duties on imports of iron pipes (NCM 7 April 2020 7303.00.00) from China, India and the United Arab Emirates (investigation initiated on 8 May 2018 and definitive duty imposed on 7 November 2019) On 13 November 2019, temporary suspension of WTO document G/ADP/N/335/BRA, anti-dumping duties on imports of padlocks (NCM 7 April 2020 8301.10.00) from China (imposed on 29 December 1995) Termination on 14 January 2020 of anti-dumping Gecex Resolution No. 3/2019 (14 duties on imports of tyres, of a kind used on motor January 2020) cars (NCM 4011.10.00) from Korea, Rep. of (investigation initiated on 20 July 2012 and definitive duty imposed on 16 January 2014) Termination on 15 January 2020 of anti-dumping Camex Resolution No. 5/2020 (15 duties on imports of hot-rolled steel (NCM January 2020) 7208.10.00; 7208.25.00; 7208.26.10; 7208.26.90; 7208.27.10; 7208.27.90; 7208.36.10; 7208.36.90; 7208.37.00; 7208.38.10; 7208.38.90; 7208.39.10; 7208.39.90; 7208.40.00; 7208.53.00; 7208.54.00; 7208.90.00; 7225.30.00; 7225.40.90) from China and the Russian Federation (investigation initiated on 20 July 2016 and definitive duty imposed on 19 January 2018. Duty suspended on 19 January 2018) Termination on 16 January 2020 of anti-dumping Permanent Delegation of Brazil to the duties on imports of tyres, of a kind used on motor WTO (20 May 2020), Secex Circular cars (NCM 4011.10.00) from Ukraine (investigation No. 2/2020 (15 January 2020) initiated on 20 July 2012 and definitive duty imposed on 16 January 2014)

Initiation on 31 January 2020 of anti-dumping Permanent Delegation of Brazil to the investigation on imports of containers for WTO (20 May 2020), Secex Circular compressed or liquefied gas, of iron or steel (CNG No. 8/2020 (29 January 2020) cylinders) (HS 7311.00.00) from China

Initiation on 20 February 2020 of anti-dumping Permanent Delegation of Brazil to the Terminated investigation on imports of phthalic anhydride (HS WTO (20 May 2020), Secex Circular on 27 April 2917.35.00) from Israel and the Russian Federation Nos. 11/2020 (19 February 2020) 2020 and 28/2020 (24 April 2020) (without measure) Termination on 5 March 2020 of anti-dumping duties Permanent Delegation of Brazil to the on imports of presensitized offset aluminium printing WTO (27 May 2020), Secex Circular plates (NCM 3701.30.21; 3701.30.31) from Hong No. 13/2020 (4 March 2020) Kong, China (investigation initiated on 25 February 2014 and definitive duty imposed on 5 March 2015) Termination on 12 May 2020 of anti-dumping duties Camex Resolution No. 35/2020 (4 on imports of ferrite segment (arc) magnet (NCM May 2020) 8505.19.10) from China and Korea, Rep. of (investigation initiated on 16 June 2014. Provisional and definitive duties imposed on 30 October 2014 and 4 May 2015, respectively)

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Measure Source/Date Status Canada Initiation on 8 November 2019 of anti-dumping WTO document G/ADP/N/335/CAN, Provisional investigation on imports of certain corrosion- 26 March 2020; and Canada Border duty resistant steel sheet 2 (HS 7210.30.00; 7210.49.00; Services Agency - Notice of imposed on 7210.61.00; 7210.69.00; 7212.20.00; 7212.30.00; Preliminary Determination COR2 20 March 7212.50.00; 7225.91.00; 7225.92.00; 7226.99.00) 2019 IN (20 March 2020) 2020 from Turkey, the United Arab Emirates and Viet Nam Initiation on 8 November 2019 of countervailing WTO document G/SCM/N/356/CAN, Provisional investigation on imports of certain corrosion- 30 March 2020; and Canada Border duty resistant steel sheet 2 (HS 7210.30.00; 7210.49.00; Services Agency - Notice of imposed on 7210.61.00; 7210.69.00; 7212.20.00; 7212.30.00; Preliminary Determination COR2 20 March 7212.50.00; 7225.91.00; 7225.92.00; 7226.99.00) 2019 IN (20 March 2020) 2020 from Turkey, the United Arab Emirates and Viet Nam China Termination on 20 November 2019 of anti-dumping WTO document G/ADP/N/335/CHN, duties on imports of pyridine (HS 2933.31.00) from 21 April 2020 India and Japan (investigation initiated on 21 September 2012. Provisional and definitive duties imposed on 27 May and 21 November 2013, respectively) Termination on 20 November 2019 of anti-dumping WTO document G/ADP/N/335/CHN, duties on imports of methyl ethyl ketone (HS 21 April 2020 2914.12.00) from Japan and Chinese Taipei (imposed on 22 November 2007) European Union Initiation on 18 December 2019 of anti-dumping WTO document G/ADP/N/335/EU, 17 investigation on imports of pins and staples (HS April 2020 7317.00.20; 7317.00.60; 7317.00.80; 7326.20.00; 7616.10.00; 8305.20.00; 8308.10.00) from China

Initiation on 14 February 2020 of anti-dumping Commission Notice 2020/C 51/12 investigation on imports of aluminium extrusions (HS (14 February 2020) 7604.10.10; 7604.10.90; 7604.21.00; 7604.29.10; 7604.29.90; 7608.10.00; 7608.20.81; 7608.20.89; 7610.90.90) from China Initiation on 14 May 2020 of anti-dumping Commission Notice 2020/C 166/05 investigation on imports of hot-rolled flat products of (14 May 2020) iron, non-alloy or other alloy steel (HS 7208.10.00; 7208.25.00; 7208.26.00; 7208.27.00; 7208.36.00; 7208.37.00; 7208.38.00; 7208.39.00; 7208.40.00; 7208.52.10; 7208.52.99; 7208.53.10; 7208.53.90; 7208.54.00; 7211.13.00; 7211.14.00; 7211.19.00; 7225.19.10; 7225.30.90; 7225.40.60; 7225.40.90; 7226.19.10; 7226.91.91; 7226.91.99) from Turkey India Initiation on 18 October 2019 of countervailing WTO document G/SCM/N/356/IND, 6 investigation on imports of flat products of stainless May 2020 steel (HS 7219; 7220) from Indonesia Initiation on 29 October 2019 of countervailing WTO document G/SCM/N/356/IND, 6 investigation on imports of styrene butadiene rubber May 2020 (HS 4002.19) from Korea, Rep. of Initiation on 4 November 2019 of safeguard WTO document G/SG/N/6/IND/47, investigation on imports of isopropyl alcohol (HS 15 November 2019 2905.12.20) Initiation on 5 November 2019 of countervailing WTO document G/SCM/N/356/IND, 6 investigation on imports of fibreboards (HS 4411.12; May 2020 4411.13; 4411.93; 4411.14; 4411.92) from Indonesia, Malaysia, Sri Lanka, Thailand and Viet Nam Termination on 20 November 2019 of anti-dumping WTO document G/ADP/N/335/IND, duties on imports of digital versatile disc-recordable 18 May 2020 (DVD-R's) (HS 8523) from China; Hong Kong, China; and Chinese Taipei (imposed on 23 July 2008)

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Measure Source/Date Status Initiation on 3 December 2019 of anti-dumping Permanent Delegation of India to the investigation on imports of new pneumatic tyres of WTO (26 May 2020) and Notification rubber for buses and lorries, with or without tubes F. No. 6/30/2019-DGTR (Case No. and/or flaps (HS 4011.20.10) from Thailand (OI) 22/2019), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (2 December 2019) Termination on 8 December 2019 of anti-dumping WTO document G/ADP/N/335/IND, duties on imports of cable ties (HS 3926.90) from 18 May 2020 China and Chinese Taipei (imposed on 31 October 2008) Initiation on 9 December 2019 of anti-dumping Permanent Delegation of India to the investigation on imports of mono ethylene glycol WTO (26 May 2020) and Notification (MEG or ethylene glycol) (HS 2905.31.00) from F. No. 6/29/2019-DGTR (Case No. Kuwait; Oman; Saudi Arabia, Kingdom of; Singapore (OI) 21/2019), Ministry of Commerce and the United Arab Emirates and Industry - Department of Commerce - Directorate General of Trade Remedies (9 December 2019) Initiation on 23 December 2019 of anti-dumping Permanent Delegation of India to the investigation on imports of 1-phenyl-3-methyl-5- WTO (26 May 2020) and Notification pyrazolone (HS 2933.19.20) from China F. No. 6/32/2019-DGTR (Case No. (OI) 24/2019), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (23 December 2019) Termination on 30 December 2019 of anti-dumping WTO document G/ADP/N/335/IND, duties on imports of pentaerythritol-I (HS 2905.42) 18 May 2020 from Chinese Taipei (imposed on 27 March 2002) Initiation on 10 January 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of ciprofloxacin WTO (26 May 2020) and Notification hydrochloride "PUC" (HS 2941.90.30) from China F. No. 6/36/2019-DGTR (Case No. (OI) 32/2019), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (10 January 2020) Initiation on 14 January 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of dimethyl formamide WTO (26 May 2020) and Notification "DMF" (HS 2921.11.10) from China and Saudi F. No. 6/37/2019-DGTR (Case No. Arabia, Kingdom of (OI) 29/2019), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (14 January 2020) Initiation on 14 January 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of viscose spun yarn "VSY" WTO (26 May 2020) and Notification (HS 5510.11.10; 5510.12.10; 5510.11.90; F. No. 6/41/2019-DGTR (Case No. 5510.12.90; 5510.90.10; 5510.90.90) from China, (OI) 32/2019), Ministry of Commerce Indonesia and Viet Nam and Industry - Department of Commerce - Directorate General of Trade Remedies (14 January 2020) Initiation on 20 January 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of newsprint in rolls or WTO (26 May 2020) and Notification sheets, excluding glazed newsprint (HS 4801.00.90; F. No. 6/40/2019-DGTR (Case No. 4801.00.10) from Australia; Canada; the European (OI) 31/2019), Ministry of Commerce Union; Hong Kong, China; the Russian Federation; and Industry - Department of Singapore and the United Arab Emirates Commerce - Directorate General of Trade Remedies (20 January 2020) Initiation on 22 January 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of soda ash (HS 2836.20) WTO (26 May 2020) and Notification from Turkey and the United States F. No. 6/39/2019-DGTR (Case No. (OI) 30/2019), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (22 January 2020)

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Measure Source/Date Status Initiation on 24 January 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of aniline (HS 2921.41.10) WTO (26 May 2020) and Notification from China F. No. 6/42/2019-DGTR (Case No. (OI) 33/2019), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (24 January 2020) Initiation on 31 January 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of toluene di-isocyanate WTO (26 May 2020) and Notification "TDI" (HS 2929.10.20) from the European Union; F. No. 6/43/2019-DGTR (Case No. Saudi Arabia, Kingdom of; Chinese Taipei and the (OI) 34/2019), Ministry of Commerce United Arab Emirates and Industry - Department of Commerce - Directorate General of Trade Remedies (31 January 2020) Termination on 2 February 2020 of anti-dumping Permanent Delegation of India to the duties on imports of purified terephthalic acid "PTA" WTO (26 May 2020) and Notification (HS 2917.36.00) from Korea, Rep. of and Thailand No. 3/2020-Customs (ADD), Ministry (investigation initiated on 8 October 2013. of Finance - Department of Revenue Provisional and definitive duties imposed on 25 July (2 February 2020) 2014 and on 27 May 2015, respectively) Termination on 2 February 2020 of anti-dumping Permanent Delegation of India to the duties on imports of purified terephthalic acid "PTA" WTO (26 May 2020) and Notification (HS 2917.36.00) from China; Indonesia; Iran, No. 3/2020-Customs (ADD), Ministry Islamic Rep. of; Malaysia and Chinese Taipei of Finance - Department of Revenue (investigation initiated on 18 June 2015. Provisional (2 February 2020) and definitive duties imposed on 10 December 2015 and 5 July 2016, respectively) Initiation on 7 February 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of self-adhesive polyvinyl WTO (26 May 2020) and Notification chloride film "SAV" (HS 3919.90.90; 3919.10.00; F. No. 6/1/2020-DGTR (Case No. 3919.90.10; 3919.90.20; 3920.99.19; 3920.99.59; (OI) 1/2020), Ministry of Commerce 3920.99.99; 3921.90.99; 3926.90.99) from China and Industry - Department of Commerce - Directorate General of Trade Remedies (7 February 2020) Initiation on 10 February 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of black toner in powder WTO (26 May 2020) and Notification form (HS 3707.90.10; 3707.90.90) from China, F. No. 6/6/2020-DGTR (Case No. Malaysia and Chinese Taipei (OI) 5/2020), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (10 February 2020) Initiation on 25 February 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of phenol (HS 2907.11) WTO (26 May 2020) and Notification from Thailand and the United States F. No. 6/3/2020-DGTR (Case No. (OI) 2/2020), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (25 February 2020) Initiation on 2 March 2020 of countervailing Permanent Delegation of India to the investigation on imports of soda ash (HS 2836.20) WTO (26 May 2020) and Notification from Turkey F. No. 6/38/2019-DGTR (Case No. OI (CVD) 10/2019), Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (2 March 2020) Termination on 13 April 2020 (without measure) of WTO document G/SG/N/9/IND/17, safeguard investigation on imports of phenol (HS 21 April 2020 2907.11.10) (investigation initiated on 23 August 2019)

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Measure Source/Date Status Initiation on 20 April 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of copper and copper alloy WTO (26 May 2020) and Notification flat-rolled products (HS 7409.11.00; 7409.19.00; F. No. 6/7/2020-DGTR (Case No. 7409.21.00; 7409.29.00; 7409.31.00; 7409.39.00; ADD-OI 6/2020), Ministry of 7409.40.00; 7409.90.00; 7410.11.00; 7410.12.00) Commerce and Industry - from China; Korea, Rep. of; Malaysia; Nepal; Sri Department of Commerce - Lanka and Thailand Directorate General of Trade Remedies (20 April 2020) Initiation on 22 April 2020 of anti-dumping Permanent Delegation of India to the investigation on imports of plain medium-density WTO (26 May 2020) and Notification fibre board having thickness less than 6 mm (HS F. No. 6/13/2020-DGTR (Case No. 4411.12.00; 4411.13.00; 4411.92.19; 4411.92.29; ADD-OI 11/2020), Ministry of 4411.93.19; 4411.94.19) from Indonesia, Malaysia, Commerce and Industry - Thailand and Viet Nam Department of Commerce - Directorate General of Trade Remedies (22 April 2020) Initiation on 9 May 2020 of anti-dumping Notification F. No. 6/8/2020-DGTR investigation on imports of natural mica-based pearl (Case No. ADD-OI 7/2020), Ministry industrial pigments excluding cosmetic grade (HS of Commerce and Industry - 3206.11) from China Department of Commerce - Directorate General of Trade Remedies (9 May 2020) Indonesia Initiation on 23 October 2019 of anti-dumping WTO document G/ADP/N/335/IDN, investigation on imports of cold-rolled stainless steel 20 May 2020 "CRS" (HS 7219.32.00; 7219.33.00; 7219.34.00; 7219.35.00; 7219.90.00; 7220.20.10; 7220.20.90; 7220.90.10; 7220.90.90) from China and Malaysia Initiation on 9 March 2020 of anti-dumping Permanent Delegation of Indonesia investigation on imports of hot-rolled coil of other to the WTO (3 June 2020) alloy steel (HS 7225.30.90) from China

Initiation on 23 March 2020 of anti-dumping Permanent Delegation of Indonesia investigation on imports of lysine (HS 2922.41.00) to the WTO (7 May 2020) from China Initiation on 13 November 2019 of safeguard WTO document G/SG/N/6/IDN/34, investigation on imports of fructose syrup (HS 15 November 2019 1702.60.20) Japan Termination on 24 April 2020 of anti-dumping duties Permanent Delegation of Japan to on imports of toluene diisocyanate (HS 2929.10) the WTO (22 May 2020) from China (investigation initiated on 14 February 2014. Provisional and definitive duties imposed on 25 December 2014 and 25 April 2015, respectively) Korea, Rep. of Initiation on 3 December 2019 of anti-dumping WTO document G/ADP/N/335/KOR, investigation on imports of plywood (HS 4412.31; 28 May 2020 4412.33; 4412.34; 4412.39; 4412.99) from Viet Nam Mexico Initiation on 1 November 2019 of anti-dumping WTO document G/ADP/N/335/MEX, investigation on imports of hydraulic bottle jacks (HS 16 March 2020 8425.42.02) from China Initiation on 19 March 2020 of anti-dumping Permanent Delegation of Mexico to investigation on imports of dioctyl phthalates (HS the WTO (22 May 2020) and Diario 2917.32.01) from Korea, Rep of and the United Oficial de la Federación (Official States Journal), 19 March 2020

Initiation on 31 March 2020 of anti-dumping Permanent Delegation of Mexico to investigation on imports of polyester-textured textile the WTO (22 May 2020) and Diario filament (HS 5402.33.01) from China and India Oficial de la Federación (Official Journal), 31 March 2020

Russian Federation (for Eurasian Economic Union) Initiation on 24 December 2019 of anti-dumping WTO document G/ADP/N/335/RUS, 6 investigation on imports of welded tubes of stainless May 2020 steel (HS 7306.40.20; 7306.40.80; 7306.61.10; 7306.69.10) from China

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Measure Source/Date Status Termination on 27 December 2019 (without WTO document G/SG/N/9/RUS/2, 17 measure) of safeguard investigation on imports of January 2020 welded tubes of stainless steel (HS 7306.40.20; 7306.40.80; 7306.61.10; 7306.69.10) (initiated on 4 March 2019) Initiation on 9 April 2020 of anti-dumping Permanent Delegation of the Russian investigation on imports of graphite electrodes (HS Federation to the WTO (27 May 8545.11.00) from China 2020) Saudi Arabia, Kingdom of (for Gulf Cooperation Council) Initiation on 23 October 2019 of safeguard WTO document G/SG/N/6/SAU/3, 24 investigation on imports of certain steel products (HS October 2019 7208; 7209; 7210; 7211; 7212; 7213; 7214; 7215; 7216; 7222; 7225; 7227; 7228; 7301; 7304; 7305; 7306; 7308) Termination on 28 November 2019 (without WTO document G/ADP/N/335/SAU, measure) of anti-dumping investigation on imports 18 May 2020 of super-absorbent polymers (HS 3906.90) from Japan and Chinese Taipei (investigation initiated on 14 February 2019) Initiation on 29 April 2020 of anti-dumping Permanent Delegation of the investigation on imports of plates, sheets, and strip Kingdom of Saudi Arabia to the WTO of aluminium alloys (HS 7606.12.00; 7606.92.00) (5 May 2020) from China South Africa (for SACU – Southern African Customs Union Botswana, Eswatini, Lesotho, Namibia, and South Africa) Initiation on 15 May 2020 of safeguard investigation WTO document G/SG/N/6/ZAF/8, on imports of bolts with hexagon heads of iron or 25 May 2020 steel (HS 7318.15.43) Turkey Termination on 13 November 2019 of anti-dumping WTO document G/ADP/N/335/TUR, duties on imports of oriented strand board "OSB" 20 February 2020 (HS 4410.12) from Canada and the United States (imposed on 18 December 2008) Termination on 13 November 2019 of anti-dumping WTO document G/ADP/N/335/TUR, duties on imports of hook and loop (HS 5806.32.90) 20 February 2020 from China and Chinese Taipei (imposed on 13 December 2002) Initiation on 14 April 2020 of anti-dumping Permanent Delegation of Turkey to investigation on imports of baby food with cereals the WTO (3 June 2020) (HS 1901.10.00) from Croatia Termination on 10 May 2020 of anti-dumping duties Permanent Delegation of Turkey to on imports of stud-link and welded link chain of iron the WTO (3 June 2020) or steel (HS 7315.81; 7315.82) from China (imposed on 20 December 2003) United States of America Initiation on 12 November 2019 of anti-dumping Department of Commerce, investigation on imports of forged steel fittings (HS International Trade Administration A- 7307.92.30; 7307.92.90; 7307.93.30; 7307.93.60; 533-891 and A-580-904, Federal 7307.93.90; 7307.99.10; 7307.99.30; 7307.99.50) Register/Vol. 84, No. 225 FR No. from India and Korea, Rep. of 64265 (21 November 2019) Initiation on 12 November 2019 of countervailing Department of Commerce, investigation on imports of forged steel fittings (HS International Trade Administration C- 7307.92.30; 7307.92.90; 7307.93.30; 7307.93.60; 533-892, Federal Register/Vol. 84, 7307.93.90; 7307.99.10; 7307.99.30; 7307.99.50) No. 225 FR No. 64270 (21 November from India 2020) Initiation on 7 January 2020 of anti-dumping Department of Commerce, investigation on imports of 4th tier cigarettes (HS International Trade Administration A- 2402.20.80) from Korea, Rep. of 580-905, Federal Register/Vol. 85, No. 10 FR No. 2390 (15 January 2020) Initiation on 8 January 2020 of anti-dumping Department of Commerce, investigation on imports of forged steel fluid end International Trade Administration A- blocks (HS 7218.91.00; 7218.99.00; 7224.90.00; 428-847, A-533-893 and A-475-840, 7326.19.00; 7326.90.86; 8413.91.90) from Federal Register/Vol. 85, No. 10 FR Germany, India and Italy No. 2394 (15 January 2020)

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Measure Source/Date Status Initiation on 8 January 2020 of countervailing Department of Commerce, investigation on imports of forged steel fluid end International Trade Administration C- blocks (HS 7218.91.00; 7218.99.00; 7224.90.00; 428-848, C-533-894, C-475-841 and 7326.19.00; 7326.90.86; 8413.91.90) from China, C-570-116, Federal Register/Vol. 85, Germany, India and Italy No. 10 FR No. 2385 (15 January 2020) Initiation on 28 January 2020 of anti-dumping Department of Commerce, investigation on imports of wood mouldings and International Trade Administration A- millwork products (HS 4409.10.40; 4409.10.45; 351-853 and A-570-117, Federal 4409.10.50; 4409.10.60; 4409.10.65; 4409.22.40; Register/Vol. 85, No. 24 FR No. 6502 4409.22.50; 4409.22.60; 4409.22.65; 4409.29.41; (5 February 2020) 4409.29.51; 4409.29.61; 4409.29.66; 4418.99.95; 4421.99.97) from Brazil and China Initiation on 28 January 2020 of countervailing Department of Commerce, investigation on imports of wood mouldings and International Trade Administration C- millwork products (HS 4409.10.40; 4409.10.45; 570-118, Federal Register/Vol. 85, 4409.10.50; 4409.10.60; 4409.10.65; 4409.22.40; No. 24 FR No. 6513 (5 February 4409.22.50; 4409.22.60; 4409.22.65; 4409.29.41; 2020) 4409.29.51; 4409.29.61; 4409.29.66; 4418.99.95; 4421.99.97) from China Initiation on 4 February 2020 of anti-dumping Department of Commerce, investigation on imports of certain vertical shaft International Trade Administration A- engines between 225 cc and 999 cc, and parts 570-119, Federal Register/Vol. 85, thereof (HS 8407.90.10; 8407.90.90; 8409.91.99) No. 24 FR No. 8809 (18 February from China 2020) Initiation on 4 February 2020 of countervailing Department of Commerce, investigation on imports of certain vertical shaft International Trade Administration C- engines between 225 cc and 999 cc, and parts 570-120, Federal Register/Vol. 85, thereof (HS 8407.90.10; 8407.90.90; 8409.91.99) No. 24 FR No. 8835 (18 February from China 2020) Initiation on 12 February 2020 of anti-dumping Department of Commerce, investigation on imports of difluoromethane "R-32" International Trade Administration A- (HS 2903.39.20; 3824.78.00) from China 570-121, Federal Register/Vol. 85, No. 36 FR No. 10406 (24 February 2020) Initiation on 25 February 2020 of anti-dumping Department of Commerce, investigation on imports of certain corrosion International Trade Administration A- inhibitors (HS 2933.99.82) from China 570-122, Federal Register/Vol. 85, No. 42 FR No. 12506 (3 March 2020) Initiation on 25 February 2020 of countervailing Department of Commerce, investigation on imports of certain corrosion International Trade Administration C- inhibitors (HS 2933.99.82) from China 570-123, Federal Register/Vol. 85, No. 42 FR No. 12502 (3 March 2020) Initiation on 24 March 2020 of anti-dumping Department of Commerce, investigation on imports of ultra-high molecular International Trade Administration A- weight polyethylene (HS 3901.10.10; 3901.20.10) 580-907, Federal Register/Vol. 85, from Korea, Rep. of No. 62 FR No. 17861 (31 March 2020) Initiation on 30 March 2020 of anti-dumping Department of Commerce, investigation on imports of common alloy aluminium International Trade Administration A- sheet (HS 7606.11.30; 7606.11.60; 7606.12.30; 525-001, A-351-854, A-891-001, A- 7606.12.60; 7606.91.30; 7606.91.60; 7606.92.30; 729-803, A-428-849, A-484-804, A- 7606.92.60) from Bahrain; Brazil; Croatia; Egypt; 533-895, A-560-835, A-475-842, A- Germany; Greece; India; Indonesia; Italy; Korea, 580-906, A-523-814, A-485-809, A- Rep. of; Oman; Romania; Serbia; Slovenia; South 801-001, A-856-001, A-791-825, A- Africa; Spain; Chinese Taipei and Turkey 469-820, A-583-867 and A-489-839, Federal Register/Vol. 85, No. 67 FR No. 19444 (7 April 2020) Initiation on 30 March 2020 of countervailing Department of Commerce, investigation on imports of common alloy aluminium International Trade Administration C- sheet (HS 7606.11.30; 7606.11.60; 7606.12.30; 351-855, C-489-840, C-525-002, C- 7606.12.60; 7606.91.30; 7606.91.60; 7606.92.30; 533-896, Federal Register/Vol. 85, 7606.92.60) from Bahrain, Kingdom of; Brazil; India No. 67 FR No. 19449 (7 April 2020) and Turkey

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Measure Source/Date Status Initiation on 16 April 2020 of anti-dumping Department of Commerce, investigation on imports of certain non-refillable International Trade Administration A- steel cylinders (HS 7310.29.00; 7311.00.00) from 570-126, Federal Register/Vol. 85, China No. 78 FR No. 22402 (22 April 2020)

Initiation on 16 April 2020 of countervailing Department of Commerce, investigation on imports of certain non-refillable International Trade Administration C- steel cylinders (HS 7310.29.00; 7311.00.00) from 570-127, Federal Register/Vol. 85, China No. 78 FR No. 22407 (22 April 2020) Initiation on 20 April 2020 of anti-dumping Department of Commerce, investigation on imports of mattresses (HS International Trade Administration A- 9404.21.00; 9404.29.10; 9404.29.90; 9401.40.00; 555-001, A-560-836, A-557-818, A- 9401.90.50) from Cambodia, Indonesia, Malaysia, 801-002, A-549-841, A-489-841 and Serbia, Thailand, Turkey and Viet Nam A-552-827, Federal Register/Vol. 85, No. 80 FR No. 23002 (24 April 2020) Initiation on 20 April 2020 of countervailing Department of Commerce, investigation on imports of mattresses (HS International Trade Administration C- 9404.21.00; 9404.29.10; 9404.29.90; 9401.40.00; 570-128, Federal Register/Vol. 85, 9401.90.50) from China No. 80 FR No. 22998 (24 April 2020)

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ANNEX 3 - OTHER TRADE-RELATED MEASURES1

(MID-OCTOBER 2019 TO MID-MAY 2020)

Confirmed information2

Measure Source/Date Status Argentina Amendments introduced in the export duties Permanent Delegation of Effective 14 legislation (derechos de exportación). For certain Argentina to the WTO (22 May December 2019 exported products (in NCM Chapters 01; 02; 03; 2020) and Decreto No. 04; 05; 07; 10; 11; 15; 20; 44; 47; 51; 52) with 37/2019 (DCTO-2019-37-APN- duty set at 9% Decreto No. 793/2018. Modificación) (14 December 2019) Temporary increase (up to 33%) of export duties Permanent Delegation of Effective 6 March (derechos de exportación) on certain products, e.g. Argentina to the WTO (22 May 2020 live animals; meat and edible meat offal; fish and 2020) and Decreto No. crustaceans; products of animal origin; dried 230/2020 (DCTO-2020-230- leguminous vegetables; cereals; wheat or meslin APN-PTE- Fíjase alícuota del flour; cereal flours; cereal groats, meat and derecho de exportación) - pellets; oil seeds and oleaginous fruits; Nomenclatura Común del miscellaneous grains; animal or vegetable fats and Mercosur (4 March 2020) oils and their cleavage products; prepared edible fats; animal or vegetable waxes; preserved ground-nuts; residues and waste from food industries; prepared animal fodder; biodiesel and mixtures thereof; wood and wood charcoal; wool, not carded or combed; and cotton, not carded or combed (539 tariff lines at 8-digit level, in Chapters NCM 01; 02; 03; 05; 07; 10; 11; 12; 15; 20; 23; 38; 44; 51) The validity of the sworn declaration requirement Permanent Delegation of Effective 12 March (Declaración Jurada de Ventas al Exterior "DJVE") Argentina to the WTO (22 May 2020 for the export of certain agricultural products was 2020) and Resolución No. automatically extended for a period of 30 days 36/2020 Ministerio de Agricultura, Ganadería y Pesca (20 March 2020) Further increase in the statistical fee (tasa de Permanent Delegation of Effective 21 estadística) (from 2.5% to 3%) (originally Argentina to the WTO (22 May December 2019 to implemented from May 2019 to 31 December 2020) and Ley 27541 - de 31 December 2020 2019) for all imports. Certain exemptions in force Solidaridad Social y Reactivación Productiva en el Marco de la Emergencia Pública (21 December 2019)

"Reference values" requirement for all exports Resolución General No. Effective 11 May (valores referenciales de exportación) 4710/2020 Administración 2020 Federal de Ingresos Públicos (8 May 2020)

Brazil Increase of import tariffs (from zero to 20%) on Permanent Delegation of Brazil Effective 1 January certain fairground amusements (carrosséis) (NCM to the WTO (20 May 2020), 2020 9508.90.19; 9508.90.22); and (from 6% to 12%) Camex Resolution Nos. 4/2019 on smart cards (NCM 8523.52.10) (24 October 2019) and 13/2019 (19 November 2019)

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Measure Source/Date Status China On 15 December 2019, imposition of additional Permanent Delegation of Effective 15 10% and 5% ad valorem rates of duty on certain China to the WTO (25 May December 2019 products from the United States (third batch) 2020) and State Council Tariff (12:01 pm) suspended Commission Announcement on Applying Additional Tariffs to Certain Imported Goods Originated from the United States (Batch No. 3), and the Customs Tariff Commission of the State Council, Announcement on suspending additional tariffs on certain imports from the United States [2019] No. 7). Viewed at: http://www.gov.cn/xinwen/20 19- 12/15/content_5461332.htm Imposition of additional tariffs on certain products Permanent Delegation of Effective 26 (HS 2710.19.99; 2712.90.10; 3901.20.00; China to the WTO (25 May December 2019 to 3901.40.10; 3910.40.20; 3902.10.00) imported 2020) and Customs Tariff 25 December 2020 from the United States suspended from 26 Commission of the State December 2019 to 25 December 2020 Council (SCTC), Announcement on the Second Exclusion List of the First Batch of Imports from the U.S. Subject to Additional Tariffs (SCTC Announcement [2019] No. 8). Viewed at: http://www.mof.gov.cn/zheng wuxinxi/zhengcefabu/201912/ P020191219362467972158.pd f Release of the 2020 catalogue of goods subject to Permanent Delegation of Effective 1 January import licensing (HS Chapters 29; 38; 84; 89; 90) China to the WTO (25 May 2020 2020) and MOFCOM, GACC Announcement No. 65 [2019]. Viewed at: http://www.mofcom.gov.cn/ar ticle/b/c/201912/2019120292 7133.shtml Release of the 2020 catalogue of goods subject to Permanent Delegation of Effective 1 January export licensing (HS Chapters 1; 2; 10; 11; 12; China to the WTO (25 May 2020 13; 14; 25; 26; 27; 28; 29; 32; 38; 44; 46; 52; 2020) and MOFCOM, GACC 71; 72; 75; 80; 81; 84; 87; 94) Announcement No. 66 [2019]. Viewed at: http://www.mofcom.gov.cn/ar ticle/b/e/201912/2019120292 7141.shtml Temporary decrease of import tariffs (from 10% to Permanent Delegation of Effective 14 5% and from 5% to 2.5%) on certain products China to the WTO (25 May February 2020 (1,717 goods in HS Chapters 1; 2; 3; 4; 5; 6; 7; 2020) and Announcement of 8; 9; 10; 11; 12; 13; 14; 15; 16; 17; 18; 19; 20; the Customs Tariff 21; 22; 23; 25; 26; 27; 28; 29; 30; 31; 32; 33; Commission of the State 34; 35; 36; 37; 38; 39; 40; 41; 42; 43; 44; 48; Council on Adjusting the 49; 50; 51; 52; 53; 54; 55; 57; 58; 61; 62; 63; Additional Tariffs on Certain 64; 65; 67; 69; 70; 71; 72; 73; 74; 80; 81; 82; Imports Originating in the 83; 84; 85), imported from the United States United States (Announcement No. 1 [2020] of the Customs Tariff Commission of the State Council. Viewed at: http://gss.mof.gov.cn/gzdt/zh engcefabu/201908/P02019082 3604938915640.pdf

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Measure Source/Date Status Imposition of additional tariffs on 65 products (HS Permanent Delegation of Effective 28 Chapters 44; 47; 49; 84; 85; 90) from the United China to the WTO (25 May February 2020 to 27 States suspended from 28 February 2020 to 27 2020) and Announcement of February 2021 February 2021. For certain products, the additional the State Council Tariff tariff levied to be refunded Commission on the second exemption list of tariffs on the United States tax commission announcement [2020] No. 3. Viewed at: http://gss.mof.gov.cn/gzdt/zh engcefabu/202002/t20200221 _3472600.htm (21 February 2020) India Amendments introduced to import condition No. 2 Permanent Delegation of India Effective 24 October of Chapter 39 of the ITC (HS), 2017, Schedule - I to the WTO (1 May 2020) 2019 (Import Policy), resulting in an import prohibition on PET flakes made from used PET bottles Initiation on 7 November 2019 of bilateral Permanent Delegation of India safeguard investigation on imports of to the WTO (26 May 2020) polybutadiene rubber "PBR" (HS 4002.20.00) from and Notification F. No. Korea, Rep. of 22/7/2019-DGTR - (Case No. (SG) 7/2019) - Bilateral Safeguard Investigation, Ministry of Commerce and Industry - Department of Commerce - Directorate General of Trade Remedies (7 November 2019) Import policy of gold (in any form, other than Permanent Delegation of India Effective 18 monetary gold) and silver in any form amended to the WTO (1 May 2020) December 2019 from "Free" to "Restricted". Import allowed only through nominated agencies as notified by the Reserve Bank of India (in case of banks) and the Directorate General of Foreign Trade (for other agencies). Imports under Advance Authorization and the supply of gold directly by foreign buyers to exporters under Para 4.45 of the FTP against export orders are exempted Amendments introduced to the import policy of Permanent Delegation of India Effective 18 peas (HS 0713.10.00). Import of peas (Pisum to the WTO (1 May 2020) December 2019 sativum, including yellow peas, green peas, dun peas and kaspa peas) restricted. Imports subjected to MIP c.i.f. (INR 200/kg) and allowed only through Kolkata seaport Amendments introduced to the import policy of Permanent Delegation of India Effective 8 January refined palm oil and its fractions (HS 1511.90), to the WTO (26 May 2020) 2020 resulting in an import restriction and Notification No. 39/2015- 2020, Ministry of Commerce and Industry - Department of Commerce (8 January 2020) Amendments introduced to the import policy of Permanent Delegation of India Effective 8 January coconuts (HS 0801.11.00). Imports of desiccated to the WTO (1 May 2020) 2020 coconut with c.i.f. value of INR 150/kg and above is "Free". Imports below c.i.f. value of INR 150/kg "Prohibited" Increase of import tariffs (from zero to 30%) on Permanent Delegation of India Effective 2 February tuna bait, and fin fish feed; (from 30% to 40%) on to the WTO (26 May 2020) 2020 whey and cheese; (from 5% to 30%) on pancreas; (from 5% to 10%) on bulbs and tubers; colour positive/negative unexposed cinematographic film in rolls; instant print film; and lead bars, rods, profiles and wires; (from zero to 100%) on meslin, durum wheat seeds and seeds of wheat (other than durum seeds); (from 5% to 10%) on MP3 or MP4 or MPEG 4 players, with or without radio or video reception; tin plates, sheets and strip of thickness exceeding 0.2 mm; tin foil (whether or not printed or backed with paper, paper-board, plastics or

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Measure Source/Date Status similar backing material) of a thickness not exceeding 0.2 mm; and tin powders and flakes; (from 5% to 30%) on sugar beets; (from 5% to 150%) on angostura bitter; (from 80% to 100%) on margarine, animal and vegetable fats and oils under HS 1517 and 1518; (from 20% to 30%) on crude glycerol, glycerol waters and glycerol lyes (other than crude glycerine), and extrose monohydrate; (from 10% to 30%) on molasses resulting from refining of sugar; (from 30% to 45%) on chewing gum; (from 17.5% to 30%) on certain food preparations for infant use and put up for retail sale; (from 30% to 50%) on certain food preparations for infant use and put up for retail sale; (from 30% to 35%) on preserved potatoes; (from 7.5% to 30%) on peanut butter; (from 7.5% to 10%) on colloidal precious metals; compounds of precious metals; amalgams of precious metal;, certain motors; and zinc tubes, pipes and tube or pipe fittings; (from 5% to 7.5%) on butyl acrylate, kainine salts, polished cubic zirconia, platinum and palladium used in the manufacture of catalytic convertors; raw substrate (ceramic); wash coated substrate (ceramic); raw substrate (metal); wash coated substrate (metal); stainless steel wire cloth stripe (falling under HS 7314.14.10); wash coat used in manufacture of catalytic convertors and their parts; sprinklers and drip irrigation; and poultry incubators and brooders; (from 10% to 20%) on isolated soya protein; (from zero to 10%) on cinematographic films, exposed but not developed; tanned furskin; specified vibrator motors/ringers, and display assemblies; (from zero to 7.5%) on compostable polymer or bio-plastic; (from 7.5% to 25%) on water blocking tape; (from zero to 10%/15%) on raw furskin; (from zero to 0.5%) on certain synthetic or reconstructed precious or semi-precious stones; (from zero to 12.5%) on gold wire with phosphorus or antimony doping, gold in the form of wire, ribbon, pre-form of purity of 99.9%; (from 10% to 15%) on headphones and earphones; on cooper and articles thereof, when used in the manufacture of specified electronic goods; and (from 2.5% to 7.5%) on rotary tillers/weeders Increase of import tariffs (from 30% to 40%) on Permanent Delegation of India Effective 2 February completely built units (CBUs) of commercial to the WTO (1 May 2020) 2020 vehicles (other than electric vehicles); (from 25% to 40%) on CBUs of commercial electrical vehicles; (from 15% to 30%) on semi knocked down (SKD) electric passenger vehicles; (from 15% to 25%) on SKD electric vehicles - buses, trucks and two wheelers; and (from 10% to 15%) on completely knocked down (CKD) forms of electric vehicles - passenger vehicles, three wheelers, two wheelers, buses and trucks (HS 8702; 8703; 8704; 8711) Increase of the road and infrastructure cess (to Permanent Delegation of India Effective 14 March INR 10/L) on imports of petrol and high-speed to the WTO (26 May 2020) 2020 diesel oil (HS 2710). On 6 May 2020, a further and Ministry of Finance - increased to INR 18/L Department of Revenue Notification Nos. 15/2020- Customs (13 March 2020) and 21/2020-Customs (5 May 2020)

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Measure Source/Date Status Amendments introduced to the export policy of Permanent Delegation of India Effective 15 March onions (HS 0703.10.10; 0712.20.00), resulting in to the WTO (26 May 2020) 2020 an export liberalization and Notification No. 49/2015- 2020, Ministry of Commerce and Industry - Department of Commerce, Directorate General of Foreign Trade (2 March 2020) Withdrawal of the basic customs duty exemption Permanent Delegation of India Effective 1 April on certain products, e.g. on gold used in the to the WTO (26 May 2020) 2020 manufacture of semi-conductor devices or light and Ministry of Finance - emitting diodes; on copper and articles thereof Department of Revenue - used for the manufacturing of ITA goods (HS Notification Nos. 5/2020- 7108.12.00; 7108.13.00) Customs, 6/2020-Customs, 7/2020-Customs (2 February 2020)

Increase of import tariffs on certain products, e.g. Permanent Delegation of India Effective 1 April (from 30% to 100%) on shelled walnuts (HS to the WTO (26 May 2020) 2020 0802.32.00); (from 10% to 17.5%) on certain and the Finance Bill, 2020 (Bill miscellaneous chemical products (HS 3824.99.00); No. 26 of 2020) (1 February (from 25% to 35%) on footwear (HS 64); (from 2020). Viewed at: 10% to 20%) on artificial flowers, foliage and fruit https://www.indiabudget.gov.i and parts thereof, articles made of artificial n/doc/Finance_Bill.pdf flowers, foliage or fruits (HS 6702); tableware, kitchenware, other household articles and toilet articles, of porcelain or china (HS 6911); ceramic tableware, kitchenware, other household articles and toilet articles, other than of porcelain or china (HS 6912); glassware (HS 7013); glass beads, imitation pearls, imitation precious or semi- precious stones and similar glassware (HS 7018.10.20); table, kitchen or other household articles and parts thereof, of copper; pot scouters and scouring or polishing pads, gloves and the like, of copper (HS 7418.10); table, kitchen or other household articles and parts thereof, of aluminium; pot scourers and scouring or polishing pads, gloves and the like, of aluminium (HS 7615.10); certain miscellaneous articles of base metal (HS 8301; 8304; 8305; 8306; 8310); certain fans (HS 8414.51); certain electrical machinery and equipment (HS 8504; 8509; 8510); electric instantaneous or storage water heaters (HS 8516); and certain miscellaneous manufactured articles (HS 9603; 9604; 9615; 9617); (from 10% to 12.5%) on coin (HS 7118); compressors of a kind used in refrigerating equipment (HS 8414.30.00); and certain hoods (HS 8414.80.11); (from 15% to 20%) certain parts of footwear (HS 6406); table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; and pot scourers and scouring or polishing pads, gloves and the like, of iron or steel (HS 7323); (from 7.5% to 10%) on certain fans (HS 8414.51.40; 8414.59); refrigerators, freezers and other refrigerating or freezing equipment (HS 8418); certain machinery (HS 8419.89.10); and brazing or soldering machines and apparatus (HS 8515); (from 7.5% to 20%) on certain fans (HS 8414.51.90; 8414.59.20); (from 10% to 15%) on certain filtering or purifying machinery and apparatus for gases (HS 8421.39); (from 20% to 25%) on miscellaneous manufactured articles (HS 9401; 9403; 9404; 9405); and (from 20% to 60%) on tricycles, scooters, pedal cars and similar

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Measure Source/Date Status wheeled toys, dolls, puzzles, and recreational models (HS 9503)

Amendments introduced in the Import Policy Notification No. 05/2015- Effective 13 May Conditions of Silver under Chapter 71 of the ITC 2020, Ministry of Commerce 2020 (HS), 2017, Schedule - I (Import Policy). Imports and Industry - Department of restricted. Imports allowed only through nominated Commerce, Directorate agencies as notified by the Reserve Bank of India General of Foreign Trade (13 (in the case of banks) and the Directorate General May 2020) of Foreign Trade (for other agencies), However, imports of silver (powder; unwrought; sheets, plates, strips, tubes and pipes) under advance authorization and the supply of silver directly by foreign buyers to exporters under Para 4.45 of the FTP against export orders are exempted (HS 7106) Indonesia Revised import licensing regulations on iron and Permanent Delegation of Effective 31 January steel, steel alloys and their derivative products (HS Indonesia to the WTO (3 June 2020 Chapter 72; 73) 2020) and Regulation of Minister of Trade No. 3/2020 Mexico Extension of the temporary increase of import Permanent Delegation of Effective 29 October tariffs (from 20% to 25%-30%) on certain Mexico to the WTO (22 May 2019 footwear (32 tariff lines at 8-digit level in Chapter 2020) and Diario Oficial de la 64); and (from 20% to 25%) on certain articles of Federación (Official Journal), apparel and clothing accessories (285 tariff lines at 28 October 2019 8-digit level in Chapters 61; 62; 63) (originally effective 6 May 2019, for 180 days) Import prohibition on e-cigarettes (HS 3824.90.83; Permanent Delegation of Effective 20 8543.70.18; 8543.90.03) Mexico to the WTO (22 May February 2020 2020) and Diario Oficial de la Federación (Official Journal), 19 February 2020

Updated list of "criterion values" (precios Permanent Delegation of Effective March 2020 estimados) for imports of yarn of synthetic staple Mexico to the WTO (22 May fibres, felt, non-wovens, pile fabrics, articles of 2020) and Diario Oficial de la apparel and clothing accessories, rags and Federación (Official Journal), 3 footwear (HS 5509; 5602; 5603; 6001; 6107; March 2020 6108; 6110; 6210; 6310; 6402; 6403; 6404) Russian Federation (for Eurasian Economic Union) Temporary increase of import tariffs (from zero to Permanent Delegation of the Effective 2 February 5%) on light-emitting diode (LED) lamps (HS Russian Federation to the WTO 2020 to 31 8539.50.00) (27 May 2020) December 2020 South Africa (for SACU – Southern African Customs Union Botswana, Eswatini, Lesotho, Namibia, and South Africa) Increase of import tariffs (from 12%/37% to Permanent Delegation of Effective: see 42%/62%) on frozen meat and edible offal of fowls South Africa to the WTO (25 individual dates in of the species gallus domesticus (HS 0207) May 2020) and International measure (effective 13 March 2020); (from zero to 30%) on Trade Administration fully-automatic top-loading washing machines (HS Commission Notice Nos. R. 8450.11.10) (effective 30 March 2020); and (to 309 - Government Gazette No. 15%) on polyethylene terephthalate "PET" (HS 43091 (13 March 2020), R. 3907) (effective 30 March 2020). Imports from the 425 and 426 - Government European Union and the Southern African Gazette No. 43179 (30 March Development Community (SADC) members 2020) exempted

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Measure Source/Date Status Turkey Increase of import tariffs (by 10%/15%) on certain Permanent Delegation of Effective: see textile products (effective 18 October 2019); (by Turkey to the WTO (3 June individual dates in 17%) on certain products of stainless steel 2020) measure (effective 1 January 2020); and (by 6.5%/15%) on fork-lift trucks (effective 25 January 2020) (HS 5803; 5804; 5806; 5807; 5808; 5809; 5810; 5811; 8427.10; 8427.20; 8427.90; 7219.31; 7219.32; 7219.33; 7219.34; 7219.35; 7220.20.21; 7220.20.29; 7220.20.41; 7220.20.49; 7220.20.81; 7220.20.89) Implementation of temporary prior export Permanent Delegation of Effective: see authorization on onions and potatoes (HS 0701.90; Turkey to the WTO (8 May individual dates in 0703.10.19) (effective 7 January 2020), and on 2020) measure fresh lemons (HS 0805.50.10) (effective 7 April 2020) Regulation of import tariffs on sunflower seed oil Permanent Delegation of Effective 18 April (18% until 31 May 2020 and 30% until 30 June Turkey to the WTO (3 June 2020 2020); and on sunflower seeds (9% until 31 May 2020) 2020 and 13% until 30 June 2020) (HS 1512.11.91; 1206.00.91; 1206.00.99) United States of America Imposition of an additional duty of 15% on certain USTR Press Releases (13 and Effective 15 products from China (555 tariff lines at 8-digit 23 August 2019). Viewed at: December 2019 level, in HS Chapters 03; 05; 06; 08; 12; 14; 15; https://ustr.gov/about- 16; 22; 28; 29; 32; 33; 36; 38; 39; 40; 41; 43; us/policy-offices/press- 44; 49; 52; 54; 55; 58; 60; 61; 62; 63; 64; 66; office/press- 67; 69; 70; 71; 72; 73; 76; 79; 82; 83; 84; 85; releases/2019/august/ustr- 87; 89; 90; 91; 92; 93; 94; 95; 96) announces-next-steps- proposed; and https://ustr.gov/about- us/policy-offices/press- office/press- releases/2019/august/ustr- statement-section-301-tariff An additional 25% ad valorem rate imposed on top Presidential Proclamation on Effective 8 February of the additional 25% ad valorem rate of duty on adjusting imports of derivative 2020 derivative steel articles (HS Chapters 72 and 73) aluminium articles and for national security reasons (originally imposed on derivative steel articles into 23 March 2018). Imports from Argentina; the United States (24 January Australia; Brazil; Canada; Mexico and Korea, Rep. 2020). Viewed at: of exempted https://www.whitehouse.gov/ presidential- actions/proclamation- adjusting-imports-derivative- aluminum-articles-derivative- steel-articles-united-states/ An additional 10% ad valorem rate imposed on top Presidential Proclamation on Effective 8 February of the additional 10% ad valorem rate of duty on adjusting imports of derivative 2020 derivative aluminium articles (HS Chapter 76) for aluminium articles and national security reasons (originally imposed on 23 derivative steel articles into March 2018). Imports from Argentina, Australia, the United States (24 January Canada and Mexico exempted 2020). Viewed at: https://www.whitehouse.gov/ presidential- actions/proclamation- adjusting-imports-derivative- aluminum-articles-derivative- steel-articles-united-states/

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Measure Source/Date Status Reduction from 15% to 7.5% of ad valorem Office of the United States Effective 14 additional duty (originally implemented in August Trade Representative - Notice February 2020 2019 - Annex A) on products from China (HS of Modification of Section 301 Chapters 01; 02; 04; 05; 06; 07; 08; 09; 10; 12; Action: China's Acts, Policies, 13; 14; 15; 16; 17; 18; 19; 20; 21; 22; 23; 24; and Practices Related to 26; 27; 28; 29; 32; 33; 34; 35; 36; 38; 39; 40; Technology Transfer, 41; 43; 44; 48; 49; 52; 53; 54; 55; 58; 59; 60; Intellectual Property, and 61; 62; 63; 64; 65; 66; 67; 69; 70; 71; 72; 73; Innovation [Billing Code 3290- 74; 76; 82; 83; 84; 85; 87; 88; 90; 91; 92; 93; F0] (January 2020). Viewed 94; 95; 96; 97) at: https://ustr.gov/issue- areas/enforcement/section- 301-investigations/section- 301-china/300-billion-trade- action (Notice of Modification - January 15, 2020)

Recorded, but not confirmed information3

Measure Source/Date Status Indonesia Temporary import ban on dairy products and alcoholic Agence France Presse Effective January beverages from the European Union ECOFI (13 March 2020) 2020

3 This Section includes information which has been obtained from public sources but has not yet been confirmed by the delegation concerned.

ANNEX 4 - MEASURES AFFECTING TRADE IN SERVICES1

(MID-OCTOBER 2019 TO MID-MAY 2020)

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member MEASURES AFFECTING VARIOUS SECTORS Argentina The government adopted new measures to tax Modes 1-2 Various sectors General Resolution 4659/2020 Published in Official certain transactions involving the acquisition of Gazette on 7 January 2020 foreign currency. Set to apply for five years from Decree 99/2019 - Ley de Solidaridad Social 23 December 2019, the tax applies to a number of y Reactivación Productiva en el Marco de la Effective 23 December 2019 transactions, including: Emergencia Pública; - purchases of foreign currency without a specific purpose by Argentine residents, under the Viewed at: limitations imposed by the Central Bank; https://taxinsights.ey.com/archive/archive- - purchases of goods or services from abroad or news/argentina-implements-new-tax-on- purchases by Argentine residents abroad through purchase-of-foreign-currency.aspx - credit, debit or purchase, including cash 128

withdrawals made outside Argentina; https://www.boletinoficial.gob.ar/detalleAvis

- purchases made online through portals or virtual o/primer - websites in foreign currency; - purchases of services rendered abroad through Argentine travel agencies; - purchases of ground, air and maritime passenger services with destinations outside Argentina (except ground passenger services to neighbouring countries).

The tax rate is 30%, except for the purchase of digital services, which are subject to a 8% rate. Both Argentine individuals and entities are subject to the tax. Argentine financial institutions, credit card issuers, travel agencies and transport companies must collect the tax.

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member China On 26 December 2019, the Regulations for the Mode 3 All Sectors P.R.C. State Council Decree No. 723 Effective 1 January 2020 YES Implementation of the Foreign Investment Law of the People's Republic of China were issued by the State Council. The regulation came into force on 1 January 2020. 2

New measures were adopted in relation to the Mode 3 All Sectors MOFCOM and State Administration for Issued on 30 December YES reporting of information on foreign investment. Market Regulation Decree [2019] No. 2 2019; effective from 1 January 2020

European Union On 1 January 2020, the European Union Directive Mode 3 All sectors Directive (EU) 2019/2121 of 27 November Effective 1 January 2020 YES on cross-border conversions, mergers and 2019 divisions entered into force. Viewed at: The Directive seeks to create a European Union- https://eur-lex.europa.eu/legal- wide legal framework to enhance the fundamental content/en/TXT/?uri=CELEX:32019L2121 -

principle of freedom of establishment. The new 129

rules introduce procedures for cross-border conversions and divisions and provide for - additional rules on cross-border mergers of limited liability companies established in an EU member state.

France The government adopted new measures that Mode 3 All sectors Decree No. 2019-1590 of 31 December 2019 Effective 1 April 2020 YES expand and clarify authorizations for foreign and Ministerial Order of 31 December 2019 investment in France. Viewed at: The measures lower the thresholds for foreign https://www.legifrance.gouv.fr/affichTexte.d investments by non-EU investors subject to prior o?cidTexte=JORFTEXT000039727443&categ authorisation, from 33.33% to 25% of voting orieLien=id rights in an entity governed by French law. They also provide for additional sectors of activities that https://investmentpolicy.unctad.org/investm fall under the foreign investment regulations, ent-policy-monitor/measures/3468/france- including print and digital media, and critical expands-and-clarifies-its-fdi-screening- technologies (e.g. cybersecurity, artificial regime intelligence, robotics, additive manufacturing, semiconductors, quantum technologies, and https://www.lexology.com/library/detail.asp

2 The new Foreign Investment Law is addressed in WT/TPR/OV/22, Annex 4.

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member energy storage). Further, the screening will focus x?g=7ffc3378-9939-4291-bfe2- on ascertaining whether a foreign investor has 092a45934b1f links to a foreign government or a foreign public body. Thus, investors are obligated to provide information in their applications on any potential significant capital ties or financial support received from a State or public body outside the European Union over the last five years. Moreover, the new measures aim to provide greater legal certainty to investors (first reply within 30 days, possibility to request an opinion on the sensitivity of activities).

Germany The government adopted modifications to its Mode 3 All sectors Amendments to the Foreign Trade and 8 April 2020 YES foreign investment regime that aim to prevent the Payments Act outflow of information or technologies that could have serious consequences for public order, safety Viewed at: and security in Germany. https://www.bundesregierung.de/breg- -

en/news/aussenwirtschaftsgesetz-1742278 130

Among other things, the amendments tighten the

screening of foreign investment. All proposed - foreign investments will be examined for any "likely adverse impact" on public order, safety or security – in line with the EU FDI Screening Regulation. The Foreign Trade and Payments Act had hitherto used as its criterion only the "actual and serious threat" posed.

National investment screening can in future also take into account any possible impact on the public order, safety or security of another member state of the European Union, or on any projects or programmes that affect the interests of the Union.

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member India On 23 March, the Indian Parliament passed an Mode 1 All sectors Amendments to the Finance Act 2020 Effective 1 April 2020 amended national budget, which expands the scope of India's equalization levy to include a new Viewed at: 2% tax on the sale of all goods and services by https://mnetax.com/indias-new-2-percent- non-Indian companies over the Internet into India. equalisation-levy-on-the-digital-economy- enters-into-force-38297 The tax is levied on e-commerce operators, which are defined as non-residents who own, operate or manage a digital or electronic facility or platform for online sale of goods, online provision of services, or both.

Indonesia The government issued Regulation No. 80 of 2019 Multiple Various sectors Government Regulation No. 80/2019 on Effective 25 November 2019 on Trading Through Electronic Systems (GR 80), modes Trading Through Electronic Systems (GR 80) which aims to regulate e-commerce activities in

Indonesia. Among other things, the regulation Viewed at: - requires all e-commerce businesses to obtain a https://www.bakermckenzie.com/en/insight/ 131 business licence to carry out these activities. publications/2019/12/indonesia-specific-e-

commerce-regulation -

The regulation also applies to entities incorporated and located outside of Indonesia that conduct e- https://www.aseanbriefing.com/news/indon commerce business activities in Indonesia. A esias-law-on-e-commerce-clear-guidelines- foreign supplier that meets certain thresholds and-compliance-by-november-2021/ relating to their business activities in Indonesia will have to appoint an Indonesian representative to act on its behalf. Threshold are to be further specified in separate regulations.

GR 80 stipulates that personal data collected by e- commerce companies cannot be transferred offshore, unless the receiving jurisdiction is deemed by the Ministry of Trade as having the same level of protection of personal data as Indonesia.

Further, e-commerce operators must prioritize the use of an Indonesian domain name, and assist compliance with government policies, such as policies on local content. Operators are also required to protect consumer rights in accordance

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member with Indonesian law, and to provide a mechanism for responding to and resolving consumer complaints.

The regulation, while effective since 25 November 2019, has a 2-year transitional period.

The government issued a new regulation on Modes 1-2 Internet and other Government Regulation No. 71 of 2019 on 21 October 2019 electronic systems and transactions, revoking its network-enabled the Implementation of Electronic Systems earlier regulation of 2012 on the same subject. The services and Transactions (GR 71), which revokes new regulation allows private sector electronic Government Regulation No. 82 of 2012 on system operators to transfer, process, and store the same subject (GR 82). data outside of Indonesia. Public electronic system operators must still keep their electronic systems Viewed at: and data in Indonesia, unless otherwise provided. https://www.bakermckenzie.com/en/insight/ publications/2019/10/new-regulation- Private electronic system operators must allow electronic-system-and-transactions supervision by government agencies, including - granting access to the electronic systems 132

and data for monitoring and law enforcement

purposes. -

The regulation provides that institutions that have 'strategic' electronic data must connect their electronic documents and electronic backup records to certain data centres in the event of an incident that must be reported to the cybersecurity authority. Strategic electronic data that must be protected include those in sectors such as transport, finance, health care, information technology and communication, and energy.

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member Italy A new law in Italy establishes a 'National Cyber Mode 3 Various sectors Law No. 133/2019 Effective 21 November 2019 Security Perimeter', aiming to ensure a high level of security of networks, information systems and Viewed at: IT services. The government is to issue a list of https://bakerxchange.com/rv/ff00572f12700 entities and companies subject to security-related e271e452d323a4d8e8d81e03882 obligations. https://investmentpolicy.unctad.org/investm The new law also modifies the FDI regime in ent-policy-monitor/measures/3493/italy- relation to 'special powers', which allow the cybernetic-national-security-perimeter-law- government to impose conditions on, or veto, tightens-the-fdi-screening-regime certain transactions in strategic sectors. Among other things, the new law extends the term for the government to exercise special powers from 15 to 45 days, broadens the content of the information to be provided to the government, and specifies the criteria used to assess if a foreign investment is likely to affect national security or public order. -

The law provides that the assessment should now 133

also consider whether foreign contracts and

acquisitions could compromise integrity and - security of networks and data passing through these networks.

Italian Budget Law for 2020 introduced a 3% Multiple Internet and other Law No. 160 of December 27, 2019 Effective 1 January 2020 digital service tax (DST) on revenues derived from modes network-enabled certain digital services provided to users located in services Viewed at: Italy. https://www.lexology.com/library/detail.asp x?g=a45c9cc5-3b43-407d-9b4d- The tax applies to entities that meet certain 74e7ab3859cc revenue thresholds: - total amount of worldwide revenues (wherever arising) equal to or exceeding https://www.ey.com/en_gl/tax-alerts/ey- EUR 750 million and an amount of revenues from italys-digital-services-tax-enters-into-force- qualified digital services in Italy equal to or as-of-1%C2%A0january-2020 exceeding EUR 5.5 million.

The tax is to be paid by Italian taxpayers as well as by non-Italian-resident companies, and covers both B2C and B2B transactions. The DST provisions contain a sunset clause providing that it will be automatically repealed once an agreement on the scope of a DST is reached at OECD level.

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member Digital services subject to the DST fall in three categories: - digital targeted advertising, which concerns advertising on a digital platform targeted at users of that interface; - intermediation services, which concerns online platforms and multi-sided digital interfaces that allow users interaction and facilitate the supply of goods or services; and - data transmission services, which involve the transmission of data collected and generated by users from their activities on digital interfaces.

Japan Japan's Diet adopted amendments to the Foreign Mode 3 All sectors Amended Foreign Exchange and Foreign Effective May 2020 YES Exchange and Foreign Trade Act. Among other Trade Act things, the amendments require overseas investors to seek prior notification from the government Viewed at: -

before obtaining a 1% or higher stake in a listed https://investmentpolicy.unctad.org/investm 134

Japanese firm engaged in business related to ent-policy-monitor/measures/3457/japan-

weapons, nuclear energy, semiconductors, revises-rules-on-foreign-investment - railroads and other areas. Prior to the amendments, the threshold was set at 10%. This https://asia.nikkei.com/Economy/Japan- is accompanied by a system where foreign tightens-entry-of-foreign-investors-in-12- investors can be exempted from prior-notification strategic-sectors requirement if they meet certain conditions.

Certain foreign investors' actions after stock purchases will also be subject to prior-notification, namely: (i) when foreign investors or closely related persons become board members of the investee company; and (ii) when foreign investors propose transfer or disposition of critical business domain of the investee company at shareholders' meetings.

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member Turkey The government adopted a digital services tax Multiple Internet and other Law no.7194 on Digital Services Tax Published in the Official YES (DST). The new measure introduces a 7.5% tax on modes network-enabled Gazette on 7 December the revenue gained from the supply of such services Viewed at: 2019. services as digital advertising, sale of any audio, https://www.mondaq.com/turkey/Tax/8734 visual or digital content through digital platforms 88/A-Summary-Of-The-New-Legislation- Effective 1 March 2020 and services provided in digital media for listening, Regarding-Digital-Services-Tax recording, playing, viewing or using any of these contents. https://www.ey.com/Publication/vwLUAssets /Turkeys_7.5_Digital_Services_Tax_to_be_e Any services that provide for or operate in a way in ffective_1_March_2020/$FILE/2020G_00023 which users can interact with each other, such as 0-20Gbl_Indirect_Turkey%20- social media platforms and digital intermediary %20Digital%20Services%20Tax%20to%20b services relating to the above services will also be e%20effective%201%20March%202020.pdf subject to DST. The tax applies to services deemed to have been provided in Turkey. Companies are subject to the tax if their revenues from the relevant services are at least EUR 750 million - globally and TL 20 million in Turkey. 135

United Kingdom - The government introduced the digital services tax Multiple Internet and other Viewed at: Effective 1 April 2020 YES (DST), a new 2% tax on the revenues of search modes network-enabled https://www.gov.uk/government/publication engines, social media services and online services s/introduction-of-the-digital-services- marketplaces which derive value from UK users. tax/digital-services-tax These businesses will be liable to the DST when the group’s worldwide revenues from these digital https://www.gov.uk/hmrc-internal- activities are more than GBP 500 million and more manuals/digital-services-tax than GBP 25 million of these revenues are derived from UK users. If the group’s revenues exceed these thresholds, its revenues derived from UK users will be taxed at a rate of 2%. There is an allowance of GBP 25 million, meaning that a group’s first GBP 25 million of revenues derived from UK users will not be subject to the DST.

The government indicated it is committed to dis- applying the DST once an appropriate international solution is in place.

United States New regulations have broadened the jurisdiction of Mode 3 All sectors Provisions Pertaining to Certain Transactions Effective 13 February 2020 the Committee on Foreign Investment in the by Foreign Persons Involving Real Estate in

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member United States (CFIUS) by expanding its review the United States (31 C.F.R. part 802) powers over foreign investments in United States businesses. Viewed at: https://home.treasury.gov/news/press- The new regulations implement releases/sm872 the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”), which aimed to allow CFIUS to better address national security concerns. The new rules clarify and revise proposed regulations issued by the Treasury Department in September 2019.

Under the new regime, the CFIUS has express jurisdiction to review non-controlling investments in critical technology, critical infrastructure and sensitive personal data businesses. This is limited to situations where a foreign investor gains: access to material non-public technical information related - to critical technology or covered investment critical 136 infrastructure; membership or observer rights on,

or the right to nominate an individual to the board - of directors; or an involvement in decision-making of the U.S. business. Transactions involving government-controlled entities from certain foreign countries are exempted from these requirements. CONSTRUCTION AND RELATED ENGINEERING SERVICES China Annulment of the Administrative Measures on Mode 3 Construction and Ministry of Housing and Urban-Rural Effective 17 January 2020 YES Foreign Investment in Construction Companies Related Engineering Development and Ministry of Commerce (MOHURD MOFTEC Decree No. 113) and the Services Provisions on Annulling Certain Rules Supplementary Provisions to the Administrative Including the Administrative Measures on Measures on Foreign Investment in Construction Foreign Investment in Construction Companies (MOHURD MOFCOM Decree No. 121). Companies (MOHURD MOFCOM Decree Foreign-invested companies are treated the same No.49) as domestic companies and are allowed to carry out a variety of construction activities according to Viewed at: the law. http://www.mohurd.gov.cn

DISTRIBUTION SERVICES Indonesia The Minister of Trade issued a new regulation on Mode 3 Franchising services Ministry of Trade Regulation No. 71 of 2019 September 2019 franchising. Among other things, the measure on Franchises

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member removes the requirement to use 80% locally- sourced raw materials, equipment or products and Viewed at: instead obliges the franchisor to prioritise the use https://www.fieldfisher.com/en/insights/indo of local goods and services so long as the goods nesia-key-changes-to-franchising-law-as- and services meet the quality set by the minist franchisor.

The new regulation also removes the restriction on the maximum number of outlets. Under the previous framework, a franchisor's maximum number of outlets was 150 for 'modern shop businesses' and 250 for food and beverage businesses.

Saudi Arabia, Kingdom of The government adopted the New Franchise Law, Modes 1 Distribution services Commercial Franchise Law 122/1441 Published in the Official YES which establishes a regulatory framework for and 3 Gazette on 22 October 2019. relationships between franchisors and franchisees. Viewed at: -

The law will apply to all franchising arrangements https://www.twobirds.com/en/news/articles/ Effective 22 April 2020. 137

implemented in Saudi Arabia. Previously, 2020/uae/saudi-franchise-law-and-the-

franchising arrangements were treated as a implications-on-existing-franchise- - commercial agency and were governed by the agreements Commercial Agencies Law.

EDUCATION SERVICES China Foreign education institutions, other organizations Mode 3 Education services Special Administrative Measures on Access Effective as of 30 June 2019 YES or individuals are allowed to separately set up non- of Foreign Investment to the Pilot Free Trade until the issuance of the compulsory vocational training institutions in pilot Zones (Negative List) (2019 edition) Special Administrative free trade zones, to further deepen the reform and Measures on Access of opening up process in the field of education. Viewed at: Foreign Investment to the http://www.gov.cn/xinwen/2019- Pilot Free Trade Zones 06/30/content_5404702.htm?from=singlem (Negative List) (2020 essage&isappinstalled=0 edition)

HEALTH SERVICES Germany Digital health applications that meet certain Multiple Health services Viewed at: 19 December 2019 YES requirements will be covered by the German state modes https://www.bundesrat.de/DE/plenum/bund health insurance schemes from 2020. Patients will esrat-

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member need to obtain a prescription by a physician or kompakt/19/983/12.html;jsessionid=C5D47 psychotherapist or their health scheme's prior 68B55129D47A44E9774F4D75CB9.1_cid382 approval. To qualify for coverage, an app must be ?nn=4352768#top-12 a digital low-risk medical device. In addition, the manufacturer must apply for registration with a new registry which will be kept by the Federal Institute for Drugs and Medical Devices. The detailed requirements for registration are being provided for in a regulation that entered into force on 21 April 2020. The regulation contains provisions pertaining to aspects such as security, data protection, data security and quality. In addition, digital health applications need to provide evidence concerning a positive impact on care (i.e. medical benefit or procedural or structural improvements to care).

India -

Telemedicine in India is now regulated by the Mode 3 Health services Viewed at: 25 March 2020 YES 138

'Telemedicine Practice Guidelines' released by the https://www.mohfw.gov.in/pdf/Telemedicine

Board of Governors (in supersession of the the .pdf - Medical Council of India). These guidelines enable practice of Registered Medical Practitioners (RMP) through telemedicine. The Guidelines are added as Appendix 5 of the Indian Medical Council (Professional Conduct, Etiquette and Ethics Regulation 2002). Freedom is given to medical practitioners to use any suitable technology for consultations with patients. The guidelines cover the following types of interactions: patient to RMP, caregiver to RMP, health worker to RMP, RMP to RMP and emergency situations. The guidelines do not cover consultations involving doctors or patients outside India. Finally, the guidelines cover technology platforms enabling telemedicine.

Indonesia The Ministry of Health (MOH) issued a new Mode 3 Health services Ministry of Health Regulation No. 20 of 2019 November 2019 regulation on telemedicine services that provides on the Implementation of Telemedicine official directions on the scope of telemedicine, Services between Health Services Facilities requirements, rights and obligations, cost, funding ("MOH Regulation 20"), implementing MOH and supervision. Regulation No. 90 of 2015 on Provision of

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member Healthcare Services in Remote and Very Remote Areas

Viewed at: https://www.bakermckenzie.com/en/insight/ publications/2019/09/updates-on- telemedicine-services-in-indonesia

The Minister of Health issued a new regulation on Mode 3 Hospital services MOH Regulation No. 3 of 2020 on the February 2020 the classification and licensing of hospitals, which Classification and Licensing of Hospitals repeals a regulation adopted in 2019, thereby ("MOH Regulation 3") removing certain limits on foreign investment in certain types of hospitals classified as Class C and Viewed at: D. Foreign investment (up to a maximum of 67% https://www.bakermckenzie.com/- for non-ASEAN investors) is no longer linked to the /media/files/insight/publications/2020/02/cli classification of the hospitals, but according to the ent-alert-on-the-minister-of-health-finally- number of beds provided (i.e. 200 beds or another revokes-the-controversial-regulation-no30- required number of beds in accordance with the of-2019-on-the-classification-and-licensing- - relevant international agreements or cooperation). of-hospitals.pdf 139

TELECOMMUNICATIONS/ICT/AUDIOVISUAL SERVICES - France In December, the government issued a Decree to Mode 3 Telecommunication Decree No. 2019-1300 of 6 December 2019 6 December 2019 YES assist the implementation of a law (No. 2019-810) services that aims to preserve Viewed at: the interests of French defence and national https://www.legifrance.gouv.fr/affichTexte.d security within the context of the launch of the 5G o?cidTexte=JORFTEXT000039455649&categ network. orieLien=id

Operators will be required to obtain prior approval from the French Prime Minister in order to operate 5G technology in French territory. The prior approval requirement applies to all operators which plan to operate, in French territory, certain devices which, by virtue of their functions, present a risk to the continuity, integrity, security or availability of the network, or to the confidentiality of communications. The provisions apply to operators of all nationalities.

Russian Federation The State Commission for Radio Frequencies Mode 3 Telecommunication Viewed at: 20 March 2020 YES

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member (SCRF) has allocated a block of 5G spectrum to an services https://www.commsupdate.com/articles/20 indefinite number of users, including industrial 20/03/20/24ghz-mmwave-5g-spectrum- enterprises and telecom operators. The decision to available-without-auction- do so was taken by the State Committee for megafonrostelecom-receive-test-mmwave- Emergencies on 17 March 2020. band/

The President signed, on 7 April, a new law aimed Mode 3 Telecommunication Federal Law on Amendments to the Federal 7 April 2020 YES at improving the system of universal services Law on Communications communication services in the Russian Federation. Under this law, at least one internet access point Viewed at: should be created in areas with a population http://en.kremlin.ru/acts/news/63161 of one hundred to five hundred people that do not have data transmission services and Internet access. In addition, if mobile radiotelephone communication services are not provided in the indicated areas, then at least one access point must be equipped with communication -

means for their provision. 140

United States - An Executive Order issued on 4 April 2020 Mode 3 Telecommunication Executive Order on Establishing the 4 April 2020 formalizes, through the establishment of a services Committee for the Assessment of Foreign Committee, the ad hoc working group known as Participation in the United States 'Team Telecom' which will assist the Federal Telecommunications Services Sector Communications Commission (FCC) in the review of foreign participation in U.S. telecommunication Viewed at: services, with the objective of enhancing national https://docs.fcc.gov/public/attachments/DO security. C-363550A1.pdf

Team Telecom will now have 120 days to conduct national security reviews of license applications.

FINANCIAL SERVICES Australia The Australian Securities and Investments Modes 1 Banking and other New FFSP regulatory framework: Foreign AFS licensing YES Commission (ASIC) has introduced a new and 3 financial services - Foreign AFS licensing regime: ASIC regime: start date of 1 April regulatory relief framework for foreign financial Corporations (Foreign Financial Services 2020 for new FFSPs, and 1 services providers (FFSPs) that wish to provide Providers—Foreign AFS licensees) April 2022 for existing FFSPs financial services to wholesale clients or Instrument 2020/198 relying on old sufficient professional investors in Australia. This replaces an - Funds management licensing relief: ASIC equivalence relief. old FFSP relief framework Corporations (Foreign Financial Services

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member Providers—Funds Management Financial Services) Instrument 2020/199

The new framework has two key elements: a new Old FFSP relief framework: Old sufficient equivalence foreign Australian Financial Service (AFS) licensing - Sufficient equivalence relief: ASIC relief (previously contained regime for FFSPs; and Licensing relief for FFSPs of Corporations (Repeal and Transitional) in 7 separate instruments): funds management financial services seeking to Instrument 2016/196 end date of 31 March 2020 induce some types of professional investors. - Sufficient equivalence relief for for new FFSPs, 31 March Luxembourg entities: ASIC Corporations 2022 for existing FFSPs (CSSF–Regulated Financial Services relying on transition period Providers) Instrument 2016/1109 for old sufficient equivalence - Limited connection relief: ASIC relief. Corporations (Foreign Financial Services Provides—Limited Connection) Instrument Funds management licensing 2017/182 relief: start date of 1 April 2022.

Limited connection relief -

(originally CO 03/824): 141

gazetted on 1 October 2003,

end date of 31 March 2022. -

China The China Banking and Insurance Regulatory Mode 3 Banking services Implementation Rules of Administrative 3 January 2020 YES Commission (CBIRC) recently revised and released Licensing of Foreign-funded Banks the Implementation Rules of Administrative Licensing of Foreign-funded Banks. Viewed at: https://www.cbirc.gov.cn/en/view/pages/Ite The Implementation Rules are in line with the mDetail.html?docId=882439&itemId=980 Regulations on the Administration of Foreign- funded Banks, allowing foreign banks to set up branches and subsidiaries with legal person status in China. It removes the total asset requirement for foreign banks to set up business entities in China, and expands the scope of major Chinese shareholders in Sino-foreign joint venture banks.

The restriction on foreign ownership in joint- Mode 3 Life insurance Notice of the CBIRC General Office on Effective 1 January 2020 YES venture life insurance companies has been services Clarifying Timing of Removing Foreign removed on 1 January 2020. Foreign ownership in Ownership Restrictions on Joint Venture Life joint-venture life insurance companies can reach Insurance Companies 100%. Relevant parties may submit applications (CBIRC General Office [2019] No.230) to the CBIRC in accordance with the Regulations

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member on Foreign-funded Insurance Companies, the Viewed at: Implementation Rules of the Regulations on https://www.cbirc.gov.cn/en/view/pages/Ite Foreign-funded Insurance Companies, and this mDetail.html?docId=858743&itemId=980 Notice. The CBIRC will start the revision of the provision of "foreign ownership shall not exceed 51% of the company's total equity capital" in the existing Implementation Rules of the Regulations on Foreign-funded Insurance Companies, which will be reissued after revision.

Removal of 51% foreign ownership limit in fund Mode 3 Financial services Viewed at: Effective 1 April 2020 YES management companies. http://www.csrc.gov.cn/pub/csrc_en/newsfa cts/release/201910/t20191015_364441.htm l

Removal of 51% foreign ownership limit in Mode 3 Financial services Viewed at: Effective 1 April 2020 YES securities companies. The removal of the foreign http://www.csrc.gov.cn/pub/csrc_en/newsfa equity cap was originally due as of 1 December cts/release/202003/t20200318_372197.htm -

2020, but the timetable was brought forward on l 142

16 March.

- Removal of 51% foreign ownership limit in Mode 3 Financial services Viewed at: Effective 1 January 2020 YES foreign-invested futures companies. http://www.csrc.gov.cn/pub/csrc_en/newsfa cts/release/201910/t20191015_364440.htm l

Since 1 January 2020, the accumulated equity Mode 3 Financial Services Article 7 of the Administrative Measures on Effective 1 January 2020 YES ratios (including direct holding and indirect Foreign Investment in Futures Companies control) of foreign shareholders in foreign-invested (China Securities Regulatory Commission futures companies are up to 100%. No.149)

Viewed at: http://www.csrc.gov.cn/zjhpublic/zjh/20180 8/t20180824_343039.htm

India As of this year, the 49% foreign equity limitation Mode 3 Insurance services Viewed at: Effective 27 April 2020 YES for insurance intermediaries (e.g. brokers, agents) https://pib.gov.in/PressReleseDetail.aspx?PR has been eliminated. The clarification of the FDI ID=1601507 policy follows the announcement made by the Finance minister in the Union Budget in 2019. https://dipp.gov.in/sites/default/files/pn1_2

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member 020.pdf

Indonesia Indonesia's Financial Services Authority issued a Mode 3 Banking services Regulation No. 41/POJK.03/2019 of the Effective 26 December 2019 new regulation on the merger, consolidation, Indonesian Financial Services Authority acquisition, integration and conversion of commercial banks. Among other things, the Viewed at: measure introduces mechanisms to facilitate the https://www.allenovery.com/en- transformation of foreign bank branches into gb/global/news-and- subsidiaries. insights/publications/indonesia-introduces- new-bank-m-and-a-rules

The government adopted a new regulation relaxing Mode 3 Banking services Government Regulation No. 3/2020 of 20 Effective 20 January 2020 foreign equity limits in insurance services. Foreign January 2020 (GR 3/2020), which amends equity ownership in insurance companies has been Government Regulation No. 14 of 2018 on capped to 80% since April 2018. Further capital Foreign Ownership of Insurance Companies increases had to respect the 80:20 ratio between (GR 14/2018). foreign and domestic shareholders. The new -

regulation relaxed this rule and added clarity Viewed at: 143

regarding the ability of insurers to conduct capital https://theinsiderstories.com/indonesia-

increases and manage their Sharia operations. raises-foreign-ownership-in-insurance- - companies-above-80/ The new regulation provides the following two key changes: 1) no obligation for capital increases to be made in a ratio of 80:20 - the obligation for an Indonesian shareholder to make a corresponding 20% capital injection in the event of a capital increase is now deleted; and 2) sharia spin-offs may be subject to the existing foreign ownership cap that is applicable to the parent insurance company, rather than the ratio of 80:20. Saudi Arabia, Kingdom of The Board of the Capital Market Authority has Mode 3 Financial services Resolution of the Board of the Capital Market Effective on 6 October 2019 YES issued a resolution to approve the amendments to Authority, dated 17 September 2019 the Instructions for Book Building Process and Allocation Method in IPOs (The Instructions). Viewed at: https://cma.org.sa/en/RulesRegulations/Reg ulations/Documents/Instructions_BookBuildi ng_Allocation.pdf

The Board of the Capital Market Authority issued a Mode 3 Financial services Resolution of the Board of the Capital Market Effective on 6 October 2019, YES resolution to approve the amendments to the Authority, dated 30 September 2019 except for paragraphs 1 and

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member Rules on the Offer of Securities and Continuing 3 of Article 90 of the Rules, Obligations (The Rules). Viewed at: which entered into force on 1 https://cma.org.sa/en/RulesRegulations/Reg January 2020 ulations/Documents/OSRCI_en.pdf

The Board of the Capital Market Authority issued a Mode 3 Financial services Resolution of the Board of the Capital Market Effective on 6 October 2019 YES resolution to approve the amendments to the Authority, dated 30 September 2019 Instructions for Companies Announcement (The Instructions). Viewed at: https://cma.org.sa/en/RulesRegulations/Reg ulations/Documents/Instructions-FSI- Ownership-Listed-Companies-en.pdf

The Board of the Capital Market Authority issued a Mode 3 Financial services Resolution of the Board of the Capital Market Effective on 6 October 2019 YES resolution to approve the amendments to the Authority, dated 30 September 2019 Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority (The Viewed at: Glossary). https://cma.org.sa/en/RulesRegulations/Reg -

ulations/Documents/CMA_Glossary_en.pdf 144

The Board of the Capital Market Authority issued a Mode 3 Financial services Resolution of the Board of the Capital Market Effective on 8 January 2020 YES - resolution to adopt the Securities Central Authority, dated 18 November 2019 Counterparties Regulations (The Regulations). Viewed at: https://cma.org.sa/en/RulesRegulations/Reg ulations/Documents/Securities-Central- Counterparties-Regulations-en.pdf

Turkey The Capital Markets Board of Turkey (CMB) Mode 1 Financial services Communiqué II-13.1 of the CMB with 22 June 2019 YES published a regulatory amendment in order to respect to Procedures and Principals for the facilitate the use of Turkish capital market Book-Keeping of Dematerialized Capital instruments as collateral in international Market Instruments - Official Gazette (dated transactions as well as foreign investments in 22 June 2019 – no. 30809) Turkish capital market instruments.

TRANSPORT SERVICES European Union The European Commission has prolonged for Modes 1 Maritime transport Consortia Block Exemption Regulation 24 March 2020 YES

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member another four years the regulation outlining the and 3 services conditions under which liner shipping consortia can Viewed at: provide joint services without infringing EU https://ec.europa.eu/commission/presscorne antitrust rules that prohibit anticompetitive r/detail/en/ip_20_518 agreements between companies.

The Consortia Block Exemption Regulation allows, under certain conditions, liner shipping operators with a combined market share of below 30% to enter into cooperation agreements to provide joint liner shipping services (known as "consortia"). These agreements, however, cannot include price- fixing or market-sharing. The current Consortia Block Exemption Regulation was due to expire on 25 April 2020. SERVICES SUPPLIED THROUGH THE MOVEMENT OF NATURAL PERSONS China Foreign high-level management and technical Mode 4 All sectors Viewed at: Effective 1 August 2019 YES -

personnel engaged in technical cooperation and https://www.nia.gov.cn/n741440/n741577/ 145

economic and trade activities in China may now c1076430/content.html

apply for a visa or residence permit valid for 2 to 5 - years.

France The French Ministry of Home Affairs has Mode 4 All sectors Viewed at: Effective January 2020 implemented changes to its Talent Passport https://www.mondaq.com/france/Immigrati programme, including expedited and streamlined on/882460/Talent-Passport-Improvements- application processing. Implemented

Germany A new immigration law expands the framework Mode 4 All sectors Viewed at: Effective 1 March 2020 YES under which qualified professionals from non-EU https://www.make-it-in- Members can work in Germany. It allows germany.com/en/visa/skilled-immigration- vocationally trained foreign nationals to be act/ employed in Germany also in occupations that are not experiencing a skills shortage. The measure abolishes the requirement to check the unavailability of German or EU nationals before non-EU citizens are allowed to take up a skilled occupation. Moreover, employers can launch an expedited procedure for qualified professionals at

Verified Mode(s) Sectoral Measure Source Date by of supply classification Member the relevant foreigners' registration office in Germany, thereby significantly shortening the duration of the administrative procedure for the issuing of the visa.

Japan The Immigration Service Agency of Japan (ISA) Mode 4 All sectors Viewed at: Effective 24 March 2020 YES has expanded the online residence application http://www.immi- system for companies to apply for various moj.go.jp/tetuduki/zairyukanri/onlineshinsei. certificates for, inter alia, Status of Residence of html "Business Managers", "Intra-Company Transferees" and "Highly Skilled Professional".

Saudi Arabia, Kingdom of Foreign nationals travelling for business must now Mode 4 All sectors Viewed at: Effective February 2020 obtain a visa pre-approval before submitting a http://www.tradearabia.com/news/MISC_36 Business Visit Visa application. 4167.html

Source: WTO Secretariat. 146

ANNEX 5 - COVID-19 TRADE AND TRADE-RELATED MEASURES (GOODS)1

Confirmed Information2

Member/ Measure Source/Date Status Observer Argentina Certain products (e.g. medical equipment and personal Permanent Delegation of Argentina to the WTO (14 April Effective 19 March 2020 protective equipment) eliminated from the list requiring 2020) and Disposición No. 5/2020 Subsecretaría de Política y non-automatic import licensing requirements (15 tariff lines Gestión Comercial - Ministerio de Desarrollo Productivo (18 at 8-digit level, in NCM Chapters 22; 38; 62; 63; 65; 90), March 2020). Viewed at: due to the COVID-19 pandemic http://servicios.infoleg.gob.ar/infolegInternet/anexos/335000 -339999/335690/norma.htm Argentina Temporary implementation of export licensing requirement Permanent Delegation of Argentina to the WTO (14 April Effective 20 March 2020 on medical ventilators (artificial respiration apparatus) 2020) and Decreto 301/2020 (19 March 2020) and (NCM 9019.20.10), due to the COVID-19 pandemic Resolución No. 140/2020 Ministerio de Desarrollo Productivo (6 April 2020). Viewed at: https://www.boletinoficial.gob.ar/detalleAviso/primera/22704 5/20200320?busqueda=1 Argentina On 21 March 2020, temporary suspension of the anti- Permanent Delegation of Argentina to the WTO (14 April Effective 21 March 2020 dumping duties on imports of hypodermic syringes of 2020) and Resolución No. 114/2020 Ministerio de Desarrollo

plastic, disposable, sterile, with or without needles (NCM Productivo (20 March 2020). Viewed at: -

9018.31.11; 9018.31.19) from China (investigation https://www.boletinoficial.gob.ar/detalleAviso/primera/22709 147 initiated on 15 September 2009 and definitive duty 5/20200321?busqueda=1

imposed on 15 March 2011) Argentina On 24 March 2020, temporary suspension of the anti- Permanent Delegation of Argentina to the WTO (14 April Effective 24 March 2020 dumping duties on imports of parenteral solutions (NCM 2020) and Resolución No. 118/2020 Ministerio de Desarrollo 3004.90.99) from Brazil and Mexico (investigation initiated Productivo (23 March 2020). Viewed at: on 29 June 2018 and definitive duty imposed on 2 https://www.boletinoficial.gob.ar/detalleAviso/primera/22711 December 2019) 8/20200324?busqueda=1 Argentina Temporary implementation of export licensing requirement Permanent Delegation of Argentina to the WTO (14 April Effective 28 March 2020 on certain products (NCM Chapters 22; 28; 29; 30; 38; 39; 2020) and Decreto No. 317/2020 - Nomenclatura Común del 40; 62; 63; 84; 90), due to the COVID-19 pandemic Mercosur (28 March 2020) and Resolución No. 140/2020 Ministerio de Desarrollo Productivo (6 April 2020 and Decreto No. 405/2020 - Nomenclatura Común del Mercosur. Viewed at: https://www.boletinoficial.gob.ar/detalleAviso/primera/22821

1 This table has been compiled by the WTO Secretariat and is an informal situation report and an attempt to provide transparency with respect to measures affecting trade in goods taken in the context of the COVID-19 crisis. It does not pass judgment on or questions the right of WTO members to take such actions. The Secretariat has not sought to determine and indicate whether the measures listed in the table have trade-restrictive or trade-facilitating effects. The information in this table is not exhaustive and does not include information on general support measures. The measures listed in this table provide a situation report up to 15 May 2020. A consistent feature of the trade and trade- related measures taken in response to the COVID-19 crisis has been the frequent changes, adjustments and occasional roll-back of such measures to reflect the evolving situation. The updated lists of measures implemented in the context of the current pandemic are available on the COVID-19 page of the WTO website: https://www.wto.org/english/tratop_e/covid19_e/trade_related_goods_measure_e.htm. 2 This Section includes information which has either been provided by the Member concerned or has been confirmed at the request of the Secretariat.

Member/ Measure Source/Date Status Observer 2/20200424 Argentina Temporary elimination of import tariffs on certain products Decreto Nos. 333/2020 - Derechos de Importación Extrazona Effective 3 April 2020 (NCM Chapters 22; 29; 38; 39; 40; 63; 65; 84; 90; 94), (1 April 2020) and 455/2020 (10 May 2020), and Resolución due to the COVID-19 pandemic. Imports also exempted General No. 4696/2020 - Administración Federal de Ingresos from VAT and the statistical fee (tasa de estadística) Públicos (14 April 2020)

Argentina Temporary elimination of the Sworn Declaration of Product Permanent Delegation of Argentina to the WTO (14 April Effective 3 April 2020 to 2 Composition requirement (Declaración Jurada de 2020) and Resolución No. 107/2020 Ministerio de Desarrollo June 2020 Composición de Productos "DJCP") on certain personal Productivo, Secretaría de Comercio Interior (2 April 2020). protective equipment (NCM 6210.10.00; 6307.90.10; Viewed at: 6307.90.90; 6505.00.22), due to the COVID-19 pandemic https://www.boletinoficial.gob.ar/detalleAviso/primera/22741 5/20200403 Australia Temporary restrictions on the non-commercial export of WTO document G/MA/QR/N/AUS/3/Add.1/Corr.1, 29 April Effective from 30 March personal protective equipment and sanitizer products, 2020 2020 and during the essential to combatting the COVID-19 pandemic. The human biosecurity measure seeks to prevent individuals and criminal emergency period; that is, syndicates from hoarding, price-gouging and profiteering on while the Biosecurity non-commercial exports from Australia. Legitimate (Human Biosecurity commercial and humanitarian exports are exempt, as are Emergency) (Coronavirus -

care packages to family overseas, although products cannot with Pandemic Potential) 148

be sent through the mail. The measures apply only to a Declaration 2020 is in

specific list of products: personal protective equipment that force (three months from - can be worn by individuals to limit transmission of 18 March 2020) organisms: disposable face masks, disposable gloves, disposable gowns, protective eye wear in the form of goggles, glasses or visors; and alcohol wipes and hand sanitizer (HS 3401.11; 3401.19; 3401.20; 3808.94; 3926.20; 4015.11; 4015.19; 6116.10; 6210.10; 6210.20; 6210.30; 6210.40; 6210.50; 6216.00; 6307.90; 6505.00; 9004.90; 9020.00) Australia Temporary tariff concession measure to facilitate the WTO document G/MA/W/152, 4 May 2020 Effective 1 February 2020 importation of certain goods (face masks, gloves, to 31 July 2020 gowns/clothes, disinfectant preparations (excluding hand sanitizers), soaps, COVID-19 test kits and reagents, and viral transport media) required to manage the crisis created by the COVID-19 pandemic. The measure was published on 1 May 2020 in Australian Customs Notice Number 2020/20. The measure will be in place until 31 July 2020, with refunds available for customs duty paid on prescribed goods imported from 1 February 2020 . The measure may be extended following a review (HS 3002.15.10; 3401.11.00; 3401.19.00; 3401.20.00; 3808.94.00; 3821.00.10; 3822.00.19; 3822.00.20; 3822.00.39;

Member/ Measure Source/Date Status Observer 3822.00.40; 3926.20.21; 3926.20.29; 3926.90.90; 4015.11.00; 4015.19.90; 4015.90.21; 4015.90.29; 4018.50.00; 4818.50.00; 6210.10.10; 6210.10.90; 6210.50.10; 6210.50.90; 6307.90.10; 6307.90.29; 6307.90.40; 6307.90.99; 9004.90.00) Brazil Temporary elimination of import tariffs on certain personal Permanent Delegation of Brazil to the WTO (1 May 2020) and Effective 18 March 2020 to protective equipment (NCM Chapters 17; 22; 25; 28; 29; Resolução Ministério da Economia/Secretaria-Executiva da 30 September 2020 30; 33; 34; 37; 38; 39; 40; 48; 55; 56; 59; 61; 62; 63; Câmara de Comércio Exterior Nos. 17/2020 (17 March 2020), 65; 70; 72; 73; 76; 84; 85; 87; 90; 94), due to the 22/2020 (25 March 2020), 28/2020 (1 April 2020), 31/2020 COVID-19 pandemic (7 April 2020), 32/2020 (16 April 2020), 33/2020, 34/2020 (29 April 2020) and 44/2020 (14 May 2020) Brazil Implementation of special export licensing scheme for WTO document G/MA/QR/N/BRA/2/Add.1, 3 June 2020 Effective 18 March 2020 goods to fight the COVID-19 pandemic (NCM Chapters 22; 29; 38; 39; 40; 56; 62; 63; 73; 90) Brazil Temporary elimination of import licensing requirements on Permanent Delegation of Brazil to the WTO (1 May 2020) and Effective 23 March 2020 certain products (e.g. vacuum plastic tubes for blood Secex Portaria No. 18/2020 (20 March 2020) collection and syringes) (NCM 3822.00.90; 3926.90.40; 9018.39.99; 9018.31.11; 9018.31.19), due to the COVID- -

19 pandemic 149 Brazil On 25 March 2020 temporary suspension of the anti- Permanent Delegation of Brazil to the WTO (1 May 2020) and Effective 25 March 2020 to

dumping duties on vacuum plastic tubes for blood collection Resolução No. 23/2020, Ministério da Economia/Secretaria- 30 September 2020 -

and syringes (NCM 3822.00.90; 3926.90.40; 9018.39.99; Executiva da Câmara de Comércio Exterior (25 March 2020) 9018.31.11; 9018.31.19) imported from China, Germany, the United Kingdom and the United States, due to the COVID-19 pandemic Brazil Temporary implementation of prior export authorization on WTO document G/MA/QR/N/BRA/2/Add.1, 3 June 2020; Effective March 2020 chloroquine, hydroxychloroquine, azithromycin, fentanyl, Permanent Delegation of Brazil to the WTO (1 May 2020) and midazolam, ethosuximide, propofol, alcuronium, Resolution Ministério da Saúde/Agência Nacional de Vigilância vecuronium, rocuronium, succinylcholine, ivermectin, and Sanitária Nos. 352, 370 and 371 nitazoxanide (NCM 2941; 3003; 3004; 3005; 3006; 2907; 2923; 2932; 2933; 2934; 3001), due to the COVID-19 pandemic Brazil Temporary elimination of import licensing requirements on Permanent Delegation of Brazil to the WTO (1 May 2020); Effective 20 March 2020 certain products (dispensa de licenciamento de anuência da Notícia Siscomex Nos. 23/2020 and 12/2020; and Subsecretaria de Operaçðes de Comércio Exterior "SUEXT") Gecex/Camex Resolution Nos. 17/2020 and 31/2020 (NCM ) used in the treatment of COVID-19 (NCM 3921.13.90; 5503.20.10; 6210.10.00; 9018.90.10)

Member/ Measure Source/Date Status Observer Brazil Temporary elimination of the IPI (Imposto sobre Produtos Permanent Delegation of Brazil to the WTO (1 May 2020) and Effective March 2020 to 30 Industrializados) internal industrial tax on certain products Decree Nos. 10.285 (20 March 2020) and 10.302 (1 April September 2020 (NCM 2207.20.19; 3808.94.11; 3808.94.19; 3808.94.29; 2020) 3926.20.00; 3936.90.40; 3926.90.90; 3926.90.90; 4015.19.00; 7326.20.00; 9004.90.20; 9004.90.90; 9018.19.80; 9018.39.23; 9018.39.99; 9019.20; 9020.00.90; 9025.11.10), due to the COVID-19 pandemic

Brazil Temporary export prohibition of individual protection WTO document G/MA/QR/N/BRA/2/Add.1, 3 June 2020 Effective 24 April 2020 equipment, mechanical ventilators and monitors (NCM 3926; 6116; 6216; 6307; 9018; 9004; 8473), due to the COVID-19 pandemic (the prohibition is subject to exceptions provided that the needs of the Brazilian population are met) Brazil Temporary relaxed administrative procedures on imports of Secex Portaria No. 25/2020 (8 May 2020) Effective 11 May 2020 certain used medical machinery and equipment and its parts thereof, due to the COVID-19 pandemic Canada As of 16 March 2020, and until further notice, Canada is WTO document G/MA/W/145, 1 April 2020; Permanent

waiving tariffs and sales taxes on all goods imported by or Delegation of Canada to the WTO (25 May 2020). CBSA -

on behalf of public health agencies, hospitals and testing Customs Notice 20-08: Imported Goods for Emergency Use in 150 sites, and first response organizations (e.g. police, fire and Response to COVID-19. Viewed at: https://www.cbsa-

local civil defence groups, including medical response asfc.gc.ca/publications/cn-ad/cn20-08-eng.html -

teams). As of 6 April 2020, Canada is also waiving tariffs and sales taxes on goods imported by or on behalf of public or private care residences, such as seniors’ residences, retirement homes, nursing homes and shelters Canada Goods imported into Canada are generally subject to the WTO document G/MA/W/145, 1 April 2020; Permanent Announced 27 March 2020 Goods and Services Tax (GST), at a rate of 5%, as well as Delegation of Canada to the WTO (25 May 2020) and Canada until further notice applicable customs duties, which vary by product and Border Service Agency, Customs Notice 20-11 (27 March country of origin. Typically, payments owing for customs 2020). Viewed at: https://www.cbsa- duties and the GST on imports are due on a monthly basis. asfc.gc.ca/publications/cn-ad/cn20-11-eng.html In order to provide cash flow and liquidity support for importers, Canada announced on 27 March 2020 that it will defer payment deadlines for March, April, and May to 30 June 2020

Member/ Measure Source/Date Status Observer Canada Temporary waiving otherwise applicable customs duties on WTO document G/MA/W/153, 14 May 2020 Effective 5 May 2020 to 30 imports of specified medical supplies, including personal June 2020 protective equipment (PPE), in order to support efforts to combat the spread of COVID-19. Relief is available to all importers of specified goods including businesses, distributors, and individual Canadians. Key categories of products covered by the measure include diagnostic test kits, face and eye protection, gloves, protective garments, disinfectants/sterilization products, medical devices, thermometers, wipes, and medical consumables, and other goods (e.g. soap). The scope of relief is based on the indicative list of medical supplies and PPE identified jointly by the WHO and the WCO as critical for combatting COVID- 19, as well as related classification guidance by the Canada Border Services Agency China MOFCOM notice actively guiding and encouraging Permanent Delegation of China to the WTO (27 April 2020). Effective 6 February 2020 enterprises to apply for import and export licenses in a Viewed at: paperless way; further simplifying the materials required http://www.mofcom.gov.cn/article/ae/ai/202002/202002029

for the paperless application for import and export licenses; 34222.shtml -

optimizing the application and updating processes of 151

electronic keys, and encouraging enterprises to apply for

and update electronic keys online -

China Circular of the Ministry of Agriculture and Rural Affairs Permanent Delegation of China to the WTO (27 April 2020). Effective 12 February 2020 implementing nine facilitation measures regarding three Viewed at: http://www.gov.cn/zhengce/zhengceku/2020- categories of agricultural administrative approval (license 02/13/content_5478044.htm renewal, simplification of approval procedure, and optimization of approval process) China Trade facilitation measures through the holding of the Permanent Delegation of China to the WTO (27 April 2020). Effective 15 June 2020 to 127th Canton International Fair online, due to the COVID- Viewed at: 24 June 2020 19 pandemic http://www.mofcom.gov.cn/article/ae/ai/202004/202004029 56113.shtml European Union Exports of personal protective equipment (HS 39; 40; 61; WTO document G/MA/QR/N/EU/4/Add.1, 8 April 2020; and Effective 15 March 2020, 62; 63; 90) subject to the temporary production of an Commission Implementing Regulation 2020/402 (14 March for a period of 6 weeks. No export authorization, due to the COVID-19 pandemic. As 2020), as amended by Regulations 2020/426 (19 March longer in force, repealed from 19 March 2020, exports to EFTA members, the Faroe 2020) by Regulation 2020/568 Islands, Andorra, San Marino and the Vatican City, as well (23 April 2020) as the overseas countries and territories listed in Annex II of the Treaty exempted

Member/ Measure Source/Date Status Observer European Union Exports of personal protective equipment subject to an WTO document G/MA/QR/N/EU/4/Add.2, 7 May 2020; and Effective 26 April 2020, for export authorization. EFTA members, Western Balkans, the Commission Implementing Regulation (EU) 2020/568 (23 30 days. Terminated on 26 Faroe Islands, Andorra, San Marino and the Vatican City, as April 2020). Viewed at: https://eur-lex.europa.eu/legal- May 2020 well as the overseas countries and territories listed in content/EN/TXT/PDF/?uri=CELEX:32020R0568&from=EN and Annex II of the Treaty are exempted from the scope of the https://trade.ec.europa.eu/doclib/press/index.cfm?id=2147 measures. The new regulation is more targeted, coverings three product categories, instead of the five in the original export authorization scheme mentioned above (only protective masks, spectacles and garment exports will require an export authorization) (HS 9004.90.10; 9004.90.90; 6307.90.98; 9020.00.00; 3926.20.00; 4015.90.00; 6113.00; 6114; 6210.10.10; 6210.10.92; 6210.10.98; 6210.20.00; 6210.30.00; 6210.40.00; 6210.50.00; 6211.32.10; 6211.32.90; 6211.33.10; 6211.33.90; 6211.39.00; 6211.42.10; 6211.42.90; 6211.43.10; 6211.43.90; 6211.49.00). The new scheme now explicitly requires member States to authorize exports of emergency supplies in the context of humanitarian aid

and to process the relevant applications in an expedite -

manner. It asks the member States to positively assess 152

exports to state agencies in charge of distributing personal

protective equipment or involved in combating the COVID- -

19 outbreak European Union Relief from import duties and VAT exemption on European Commission Decision 2020/491 (3 April 2020) Effective 30 January 2020 importation granted for goods needed to combat the effects to 31 July 2020 of the COVID-19 outbreak during 2020. The goods are intended for one of the following uses: (i) distribution free of charge by bodies and organizations to persons affected by or at risk from COVID-19 or involved in combating the COVID-19 outbreak; (ii) being made available free of charge to the persons affected by or at risk from COVID-19 or involved in combating the COVID-19 outbreak while remaining the property of the bodies and organizations; and (iii) the goods are imported for release for free circulation by or on behalf of state organizations, including state bodies, public bodies and other bodies governed by public law or by or on behalf of organizations approved by the competent authorities in the member States

Member/ Measure Source/Date Status Observer European Union Implementation of Green Lanes under the Guidelines for European Commission Notice 2020/C 96 I/01 (24 March border management measures to protect health and ensure 2020) the availability of goods and essential services. In order to preserve the EU-wide operation of supply chains and ensure the functioning of the Single Market for goods, wherever internal border controls exist or have been introduced, member States are requested to designate immediately all the relevant internal border-crossing points of the trans-European transport network (TEN-T) and additional ones, as "green lane" border crossings, for land (road and rail), sea and air transport European Union Guidance from the EU Commission on using the public European Commission Communication 2020/C 108 I/01 (1 procurement framework in the emergency situation related April 2020) to the COVID-19 crisis. The document recalls the options and flexibilities provided by the existing EU public procurement framework in emergency situations such as that caused by the COVID-19 outbreak. It provides an overview of the choice of tendering procedures available to

public buyers and applicable deadlines -

European Union Guidelines for border management measures to protect C(2020) 1753 final (16 March) 153

health and ensure the availability of goods and essential

services. These guidelines set out principles for an -

integrated approach to an effective border management to protect health while preserving the integrity of the EU Single Market European Union Communication from the Commission - European European Commission Guidelines: Facilitating Air Cargo Commission Guidelines: Facilitating Air Cargo Operations Operations during COVID-19 outbreak (C(2020) 2010 final during COVID-19 outbreak. The Guidelines aim to ensure (26 March 2020)). Viewed at: essential transport flows. Member States are requested to https://ec.europa.eu/transport/sites/transport/files/legislation facilitate air cargo operations during the COVID-19 /c20202010_en.pdf outbreak European Union Guidance on customs issues related to the COVID-19 European Commission. Viewed at: emergency. As a result of the crisis created by the COVID- https://ec.europa.eu/taxation_customs/covid-19-taxud- 19 pandemic, questions have emerged concerning the response/guidance-customs-issues-related-covid-19- application of customs provisions relating to the customs emergency_en decision-making process, customs procedures and customs formalities. The objective of this page is to offer guidance to the concerned stakeholders on practical solutions given by the current EU legal framework

Member/ Measure Source/Date Status Observer European Union Guidelines on the optimal and rational supply of medicines European Commission Communication 2020/C 116 I/01 (8 to avoid shortages during the COVID-19 outbreak. These April 2020) guidelines aim to protect public health and preserve the integrity of the Single Market, while ensuring that Europe has the supply of affordable medicines it needs during the COVID-19 outbreak. The guidelines outlined that: (i) "lifting export bans and restrictions": member States are expected to protect public health in a spirit of European solidarity. In order to achieve this objective, it is critically important that member States lift export bans on medicines within the internal market. While it is understandable that countries wish to ensure the availability of essential medicines nationally, export bans are detrimental to the availability of medicines for European patients even when they are legally justifiable. Measures leading to the requisitioning of medicines, intermediates or APIs, or their production, should not be considered as an option. These measures, especially as far as they are applied to active

pharmaceutical ingredients (APIs) or intermediates, -

endanger supply since they lead to a slowdown in industry 154

output; and (ii) "avoiding national stockpiling": the COVID-

19 pandemic affects all member States. They must ensure -

that essential medicines are available in the hospitals and pharmacies that need them most, regardless of their location. Preventive stockpiling by member States puts supply at risk for all countries. A fortiori, more localized stockpiling can be even more harmful - member States should therefore ensure that stockpiling by wholesalers and pharmacies (including by hospital pharmacies) is prevented France Temporary export ban on certain medicines Public information transmitted by the EU Delegation, Décret On 11 May 2020 measure (hydroxychloroquine) and requisition measure on face No. 2020-293 (Articles 12 and 12-2) (23 March 2020). repealed masks, due to the COVID-19 pandemic (effective 23 March Viewed at: 2020) https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORF TEXT000041746694&categorieLien=cid Germany Declaration of supply shortage for pneumococcal vaccines, Public information transmitted by the EU Delegation Effective 17 March 2020 due to the COVID-19 pandemic. The declaration facilitates reallocation and import of vaccines Italy Strengthening measures of the National Health Service and Public information transmitted by the EU. Decreto-Legge No. Measure repealed economic support for families, workers and businesses 18 (17 March 2020). Viewed at: https://www.gazzettaufficiale.it/eli/id/2020/03/17/20G00034 /sge

Member/ Measure Source/Date Status Observer Italy Further urgent civil protection interventions related to the Public information transmitted by the EU. Decree Nos. 639 emergency health risk related to the occurrence of COVID- (25 February 2020) and 641 (28 February 2020). Viewed at: 19 pandemic https://www.gazzettaufficiale.it/atto/serie_generale/caricaDet taglioAtto/originario?atto.dataPubblicazioneGazzetta=2020- 02- 28&atto.codiceRedazionale=20A01349&elenco30giorni=false India Amendments introduced to the export policy of Personal Permanent Delegation of India to the WTO (1 May 2020) and Effective 31 January 2020 Protective Equipment/Masks-reg (HS 3926.90; 6217.90; Ministry of Commerce and Industry - Department of 6307.90; 9018.50; 9018.90; 9020), resulting in an export Commerce, Directorate General of Foreign Trade Notification restriction due to the COVID-19 pandemic Nos. 44/2015-2020 (31 January 2020) and 48/2015-2020 (25 February 2020) India Certain products (e.g. surgical masks/disposable masks Permanent Delegation of India to the WTO (1 May 2020) and Effective February 2020 (2/3 ply); all gloves except NBR gloves; all ophthalmic Ministry of Commerce and Industry - Department of instruments and appliances under HS 9018.50 except Commerce, Directorate General of Foreign Trade, Notification medical goggles; surgical blades; non-woven shoes Nos. 47/2015-2020 (8 February 2020) (disposable); breathing appliances used by airmen, divers, mountaineers and firemen; gas masks with chemical absorbent for filtration against poisonous vapour, smoke,

gases; HPDE tarpaulin/plastic tarpaulin; PVD conveyor -

belts; and biopsy punches) exempted from the export ban 155

implemented due to the COVID-19 pandemic

India Amendments introduced to the export policy of Active Permanent Delegation of India to the WTO (1 May 2020) and Effective 3 March 2020 -

Pharmaceutical Ingredients (APIs) and formulations made Notification No. 50/2015-2020, Ministry of Commerce and from these APIs (HS 2922.29.33; 2933.29.10; 2933.29.20; Industry - Department of Commerce, Directorate General of 2933.59.90; 2936.22.10; 2936.25.00; 2936.26.10; Foreign Trade (3 March 2020) 2937.23.00; 2941.40.00; 2941.50.00; 2941.90.50; 2941.90.90; 2942.00.90; 3004.20.50; 3004.20.61; 3004.20.95; 3004.39.19; 3004.50.32; 3004.50.34; 3004.50.39; 3004.90.15; 3004.90.21; 3004.90.22; 3004.90.23; 3004.90.99), resulting in an export restriction due to the COVID-19 pandemic India Amendments introduced to the export policy of Masks, Permanent Delegation of India to the WTO (1 May 2020) and Effective 19 March 2020 Ventilators, and Textile Raw Materials for Masks and Notification No. 52/2015-2020, Ministry of Commerce and Coveralls (HS 3926.90; 6217.90; 6307.90; 9018; 9020; Industry - Department of Commerce, Directorate General of 5603.11; 5603.12; 5603.13; 5603.14; 5603.91; 5603.92; Foreign Trade (19 March 2020) 5603.93; 5603.94), resulting in an export restriction due to the COVID-19 pandemic India Amendments introduced to the export policy of Ventilators, Permanent Delegation of India to the WTO (1 May 2020) and Effective 24 March 2020 including any Artificial Respiratory Apparatus or Oxygen Notification No. 53/2015-2020, Ministry of Commerce and Therapy or any other Breathing Appliances/Devices and Industry - Department of Commerce, Directorate General of Sanitizers (HS 3004.90.87; 3401; 3402; 3808.94; 9018; Foreign Trade (24 March 2020) 9019; 9020), resulting in an export restriction due to the COVID-19 pandemic

Member/ Measure Source/Date Status Observer India Amendments introduced to the export policy of Permanent Delegation of India to the WTO (1 May 2020) and Effective 25 March 2020 Hydroxychloroquine (HS 3004.90.87; 3401; 3402; Ministry of Commerce and Industry - Department of 3808.94; 9018; 9019; 9020), resulting in an export Commerce, Directorate General of Foreign Trade, Notification restriction (subject to some exceptions), due to the COVID- Nos. 54/2015-2020 (25 March 2020) and 01/2015-2020 (4 19 pandemic. On 4 April 2020, exceptions eliminated April 2020) resulting in an export prohibition of hydroxychloroquine India Amendments introduced to the import policy of Iron and Permanent Delegation of India to the WTO (1 May 2020) and Effective 31 March 2020 Steel and incorporation of policy condition in HS Chapters Notification No. 58/2015-2020, Ministry of Commerce and 72; 73; 86, Schedule-I (import policy), resulting in an Industry - Department of Commerce, Directorate General of extension of validity to 135 days to automatic registration Foreign Trade (31 March 2020) number generated under the Steel Import Monitoring System "SIMS" until 31 March 2020, due to the COVID-19 pandemic India Imports of certain medical and surgical instruments and Ministry of Finance - Department of Revenue - Notification Effective 1 April 2020 apparatus (HS 9018; 9019; 9020; 9021; 9022) exempted No. 8/2020-Customs (2 February 2020) from the "health cess" India Amendments introduced to the export policy of diagnostic Permanent Delegation of India to the WTO (1 May 2020) and Effective 4 April 2020 kits (diagnostic or laboratory reagents on a backing, Notification No. 59/2015-2020, Ministry of Commerce and

preparation diagnostic or laboratory reagents whether or Industry - Department of Commerce, Directorate General of -

not on a backing, other than those of heading HS 3006 or Foreign Trade (4 April 2020) 156

3008; certified reference materials) (HS 3822), resulting in

an export restriction due to the COVID-19 pandemic -

India Further amendments introduced to the export policy of Permanent Delegation of India to the WTO (1 May 2020) and Effective 6 April 2020 Active Pharmaceutical Ingredients (APIs) and formulations Notification No. 02/2015-2020, Ministry of Commerce and made from these APIs (HS 2933.29.10; 2933.29.20; Industry - Department of Commerce, Directorate General of 2933.59.90; 2936.22.10; 2936.25.00; 2936.26.10; Foreign Trade (6 April 2020) 2937.23.00; 2941.40.00; 2941.50.00; 2941.90.90; 2942.00.90; 3004.20.50; 3004.20.61; 3004.20.95; 3004.39.19; 3004.50.32; 3004.50.34; 3004.50.39; 3004.90.15; 3004.90.21; 3004.90.22; 3004.90.23; 3004.90.99), changing from restricted to free, due to the COVID-19 pandemic India Temporary elimination of import tariffs on: (i) artificial Permanent Delegation of India to the WTO (1 May 2020) and Effective 9 April 2020 to respiration or other therapeutic respiration apparatus Notification No. 20/2020-Customs, Ministry of Finance - 30 September 2020 (ventilators) (HS 9018; 9019); (ii) face masks and surgical Department of Revenue (9 April 2020) masks (HS Chapter 63); (iii) personal protection equipment (HS Chapter 62); (iv) COVID-19 testing kits (HS Chapters 30 and 38); and (v) inputs for the manufacture of items (i) to (iv) subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2012, due to the COVID- 19 pandemic. Imports also exempted from the Health Cess India Further amendments introduced to the export policy of Permanent Delegation of India to the WTO (1 May 2020) and Effective 17 April 2020

Member/ Measure Source/Date Status Observer formulation made from paracetamol (including FDCs) (HS Notification No. 03/2015-2020, Ministry of Commerce and 3004.90.99), changing from restricted to free, due to the Industry - Department of Commerce, Directorate General of COVID-19 pandemic. Paracetamol APIs will remain Foreign Trade (17 April 2020) restricted for export India Amendments introduced in the Export Policy of Sanitizers. Notification No. 04/2015-2020, Ministry of Commerce and Effective 6 May 2020 Only "alcohol based hand sanitizers" are prohibited for Industry - Department of Commerce, Directorate General of export (HS 3004; 3401; 3402; 3808.94), due to the Foreign Trade (6 May 2020) COVID-19 pandemic. All other items falling under the HS Codes mentioned are freely exportable India Amendments introduced in the Export Policy of Masks, Notification No. 06/2015-2020, Ministry of Commerce and Effective 16 May 2020 allowing the export of non-medical/non-surgical masks of Industry - Department of Commerce, Directorate General of all types (cotton, silk, wool, knitted) (HS 3926.90; Foreign Trade (16 May 2020) 6217.90; 6307.90; 9018.90; 90209. All other types of masks falling under any HS Codes continued to remain prohibited for exports India Amendments introduced in the Export Policy of Paracetamol Notification No. 07/2015-2020, Ministry of Commerce and Effective 28 May 2020 API (HS 2922.29.33), making its exports "free" with Industry - Department of Commerce, Directorate General of immediate effect, due to the COVID-19 pandemic Foreign Trade (28 May 2020)

Indonesia Temporary elimination of import certification requirements Permanent Delegation of Indonesia to the WTO (1 April 2020) Effective 18 March 2020 to -

on imports of onions and garlic (HS 0703), due to the and Ministry of Trade Regulation No. 27 31 May 2020 157

COVID-19 pandemic

Indonesia Temporary export ban on antiseptic, raw materials to Permanent Delegation of Indonesia to the WTO (1 April 2020) Effective 18 March 2020 to -

fabricate masks, personal protective equipment (PPE), ethyl and Ministry of Trade Regulation Nos. 23 and 31. Viewed at: 30 June 2020 alcohol and masks (HS Chapters 22; 30; 38; 56; 62; 63), http://jdih.kemendag.go.id/peraturan/detail/1983/2. due to the COVID-19 pandemic Indonesia Temporary elimination of import certification requirements Permanent Delegation of Indonesia to the WTO (1 April 2020) Effective 23 March 2020 to on imports of certain products, e.g. masks and personal and Ministry of Trade Regulation No. 28 30 June 2020 protective equipment, due to the COVID-19 pandemic Indonesia Postponing the payment of excise duties on imports of Permanent Delegation of Indonesia to the WTO (13 May Effective 9 April 2020 certain goods, due to the COVID-19 pandemic 2020) and Regulation No. 30/PMK 04/2020 - Ministry of Finance Indonesia Temporary elimination of import tariffs on certain medical Permanent Delegation of Indonesia to the WTO (13 May Effective 17 April 2020 and pharmaceutical products used in the treatment of 2020) and Regulation No. 34/PMK 04/2020 - Ministry of COVID-19 (73 tariff lines at 8-digit level, in HS Chapters Finance 29; 30; 34; 38; 39; 40; 62; 63; 64; 65; 90). Imports also exempted from VAT and income taxes Japan Prioritization of customs clearance for relief goods relating Permanent Delegation of Japan to the WTO (19 May 2020). Effective 3 March 2020 to countermeasures to the COVID-19 and other goods that Viewed at: www.customs.go.jp/english/news/covid- require an urgent clearance to maintain the lifeline 19/index.htm) Japan Simplified import and export declaration forms for relief Permanent Delegation of Japan to the WTO (19 May 2020). Effective 3 March 2020 goods relating to countermeasures to the COVID-19 etc Viewed at: www.customs.go.jp/english/news/covid- 19/index.htm)

Member/ Measure Source/Date Status Observer Japan Exemption of customs duty and (domestic) consumption Permanent Delegation of Japan to the WTO (19 May 2020). tax for imported goods which are proved to be provided Viewed at: https://www.customs.go.jp/english/news/covid- free of charge 19/index.htm Japan Extension of time limits for customs procedures, including Permanent Delegation of Japan to the WTO (22 May 2020), Effective 11 May 2020 those for payment of customs duties in certain cases, due Ministry of Finance Notice No. 122/2020. Viewed at: to the COVID-19 pandemic https://www.customs.go.jp/news/news/20200511_index.htm Japan Refund of, reduction of, or exemption from certain customs Permanent Delegation of Japan to the WTO (22 May 2020), Effective 11 May 2020 fees, due to the COVID-19 pandemic Ministry of Finance Notice No. 122/2020. Viewed at: https://www.customs.go.jp/news/news/20200511_index.htm Korea, Rep. of Temporary export ban on surgical and sanitary masks and WTO document G/MA/QR/N/KOR/2/Add.1, 14 April 2020 Effective 6 March 2020 to melt blown filters (HS 6307.90.90; 5603.12.90; 30 June 2020 5603.92.00), due to the COVID-19 pandemic Korea, Rep. of Temporary elimination of import tariffs on surgical and WTO document G/MA/W/147, 14 April 2020 Effective 18 March 2020 to sanitary masks and melt blown filters (HS 6307.90.90; 30 June 2020 5603.12.10; 5603.12.90; 5603.92.00), due to the COVID- 19 pandemic Russian Temporary export ban on certain personal protective Permanent Delegation of the Russian Federation to the WTO Effective 2 March 2020 to Federation equipment (e.g. face masks) (HS Chapters 30; 38; 39; 40; (20 April 2020), and Decree No. 223 (2 March 2020) 1 June 2020

56; 59; 62; 63; 84; 90), due to the COVID-19 pandemic -

Russian Temporary (1 month) exemption from weight control of Permanent Delegation of the Russian Federation to the WTO Effective 21 March 2020 to 158

Federation vehicles transporting food and non-food necessities in (23 April 2020), and Orders of the Federal Service for 25 April 2020

trailers and semi-trailers of the platform type with a tented supervision of transport Nos. ВБ-101-р(фс) (19 March 2020) -

top, as well as in vans, trailers, semi-trailers of the and ВБ-107-р(фс) (24 March 2020) refrigerated and isothermal type, due to the COVID-19 pandemic Russian Temporary export quota (7 million tonnes) on wheat and Permanent Delegation of the Russian Federation to the WTO Effective 1 April to 30 June Federation meslin, rye, barley and maize (HS 1001; 1002; 1003; (20 April 2020) and Decree No. 385 (31 March 2020) 2020 1005) Russian Extension of the list of imported medical products Permanent Delegation of the Russian Federation to the WTO Effective 6 April 2020 Federation exempted from VAT (HS 29; 30; 38; 39; 40; 62; 63; 65; (20 April 2020) and Decree No. 419 (2 April 2020) 84; 85; 90), due to the COVID-19 pandemic Eurasian Temporary elimination of import tariffs on certain products, Permanent Delegation of the Russian Federation to the WTO Effective 3 April 2020 Economic Union e.g. organic chemicals; amine-function compounds; ationic (20 April 2020) and Decision of the Council of the Eurasian organic surface-active agents; non-ionic organic surface- Economic Commission No. 21 (16 March 2020) active agents; antisera; wadding, gauze, bandages and similar articles; surgical gloves; personal protective equipment; and instruments and appliances used in medical, surgical sciences (HS Chapters 17; 21; 25; 28; 29; 30; 34; 35; 38; 39; 40; 42; 55; 56; 59; 62; 70; 76; 84; 94; 96), due to the COVID-19 pandemic Eurasian Temporary export ban on certain personal protective Permanent Delegation of the Russian Federation to the WTO Effective 5 April 2020 to Economic Union equipment (e.g. face masks) (HS Chapters 29; 30; 38; 39; (20 April 2020) and Decision of the Council of the Eurasian 30 September 2020 40; 56; 59; 62; 63; 84; 90), due to the COVID-19 Economic Commission No. 41 (24 March 2020)

Member/ Measure Source/Date Status Observer pandemic

Eurasian Temporary export ban on certain food products (e.g. bulb Permanent Delegation of the Russian Federation to the WTO Effective 12 April 2020 to Economic Union onions; garlic; turnips; rye; rice; buckwheat; millet; cereal (20 April 2020) and Decision of the Council of the Eurasian 30 June 2020 groats; meal and pellets; buckwheat grains pearled; soya Economic Commission No. 43 (31 March 2020) beans, whether or not broken; sunflower seeds, whether or not broken; prepared foods from buckwheat) (HS Chapters 07; 10; 11; 12; 19), due to the COVID-19 pandemic Eurasian Temporary elimination of import tariffs on certain food Permanent Delegation of the Russian Federation to the WTO Effective 18 April 2020 to Economic Union products (e.g. potatoes, onions, garlic, cabbage, carrots, (20 April 2020) and Decision of the Council of the Eurasian 30 June 2020 peppers, rye, rice, buckwheat, buckwheat groats, baby food Economic Commission Nos. 33 and 34 (3 April 2020) and raw materials for its production, juices), and medicines, pipettes, disinfection systems, endoscopes and contactless thermometers, medical substances, refrigerators and containers for medical purposes (HS Chapters 7; 10; 11; 17; 19; 20; 21; 28; 29; 30; 35; 38; 39; 42; 48; 76; 84; 87; 90, due to the COVID-19 pandemic Eurasian Temporary simplification of the country of origin Permanent Delegation of the Russian Federation to the WTO Effective 18 April 2020 to Economic Union confirmation procedure applied to goods imported from (23 April 2020) and Decision of the Council of the Eurasian 30 September 2020 -

developing and LDCs countries, including through a Economic Commission No. 36 (3 April 2020) 159

possibility to provide electronic or paper copy of the

certificate of origin - Saudi Arabia, Postponing the collection of customs duties on imports for a Permanent Delegation of Saudi Arabia to the WTO (3 Kingdom of period of 30 days against the submission of a bank May 2020) guarantee, for the next three months and setting the necessary criteria for extending the postponement period for the most affected activities as needed, due to the COVID-19 pandemic Saudi Arabia, Temporary export ban on COVID-19 detection and Permanent Delegation of Saudi Arabia to the WTO (3 Effective 4 February 2020 Kingdom of prevention products (e.g. personal protective equipment, May 2020), Royal Decrees No. 35700 for year 1441H dated face masks, diagnostic tests) medical equipment and 09/7/1441H (4 February 2020) and No. 46009 for year pharmaceutical products (268 tariff lines at 10-digit level in 1441H dated 28/7/1441H (23 March 2020) HS Chapters 22; 25; 30; 33; 34; 38; 39; 40; 44; 48; 62; 63; 65; 84; 90), due to the COVID-19 pandemic South Africa "COVID-19 export control regulation" on certain personal Permanent Delegation of South Africa to the WTO (6 April Effective 27 March 2020 protective equipment (e.g. face masks, disinfectant) (HS 2020) and Department of Trade and Industry, Notice No. 3008.94; 6307.90; 9020.00; 2933.39; 2933.49; 2933.99; R.424 - Government Gazette No. 43177 (27 March 2020) 3002.12; 3002.20; 3004), due to the COVID-19 pandemic. Goods shall not be exported except by virtue of an export permit Turkey Temporary elimination of import tariffs on ethyl alcohol. Permanent Delegation of Turkey to the WTO (24 April 2020) Effective 25 March 2020 Temporary elimination of additional customs duties (13% and 20%) on breathing machines and medical masks, due

Member/ Measure Source/Date Status Observer to the COVID-19 pandemic (HS 2207.20.00; 6307.90.98; 9019.20.00)

Turkey Implementation of temporary prior export Permanent Delegation of Turkey to the WTO (24 April 2020) Effective: see individual authorization/registration on gas, dust and radioactive dust dates in measure filter masks, protective clothing, liquid-proof aprons (protective gowns used against chemicals), protective glasses, medical and surgical masks, medical sterile/non- sterile gloves (effective 4 March 2020); ethyl alcohol, eau de cologne, disinfectant, hydrogen peroxide and non-woven fabrics (effective 18 March 2020); on ventilators, extracorporeal membrane oxygenation, oxygen concentrator, ventilator apparatus, anaesthesia and ventilator circuits, cannula, intubation apparatus and intensive care monitors (effective 26 March 2020); and on fresh lemons (effective 7 April 2020) (HS 2207; 2208.90.91; 2208.90.99; 3303.00.90; 3402.90.10; 3808.94.10; 3808.94.20; 3808.94.90; 2905.12.00; 2847; 5603; 8481; 9019.20.00; 9018.90.84; 9026; 9027.10; -

9018; 9018.90.60; 9018.39; 9019; 9019.20; 9018.19.10; 160

0805.50), due to the COVID-19 pandemic

Turkey Termination of prior export authorization/registration Permanent Delegation of Turkey to the WTO (8 May 2020) Effective 2 May 2020 - on certain products, e.g. ethyl alcohol, eau de cologne, disinfectant, hydrogen peroxide, ventilator, extracorporeal membrane oxygenation, oxygen concentrator, ventilator apparatus, anaesthesia and ventilator circuit, cannula, intubation apparatus and intensive care monitors (HS 2207; 2208.90.91; 2208.90.99; 3303.00.90; 3402.90.10; 3808.94.10; 3808.94.20; 3808.94.90; 2905.12.00; 2847; 8481; 9019.20.00; 9018.90.84; 9026; 9027.10; 9018; 9018.90.60; 9018.39; 9019; 9019.20; 9018.19.10), due to the COVID-19 pandemic United Kingdom Temporary export ban (including parallel exportation from United Kingdom Mission to Geneva (9 April 2020). Viewed at: the United Kingdom) of certain medicaments (HS Chapters https://assets.publishing.service.gov.uk/government/uploads 25; 28; 29; 30; 31; 39), needed to treat COVID-19 /system/uploads/attachment_data/file/876961/Medicines_tha patients in ICU and other settings for the protection of UK t_cannot_be_parallel_exported_from_the_UK_MASTER__4_.c public health. The restrictions do not apply to drugs sv/preview manufactured or intended for other countries and, as such, apply only to the export of drugs put in the supply chain for UK patients. The legal basis of the restrictions is Regulations 43(2) and 78 of the Human Medicines Regulations 2012 requiring wholesale dealers and marketing authorization holders to ensure continued supply for UK patients. These are temporary measures, in place to

Member/ Measure Source/Date Status Observer relieve critical shortages of medicines necessary for the protection of human health United Kingdom Temporary elimination of import tariffs on medical supplies, United Kingdom Mission to Geneva (9 April 2020); GOV.UK: Effective 27 March 2020 to equipment and protective garments (HS Chapters 22; 28; business and industry, trade and investment, customs 31 July 2020 30; 34; 38; 39; 40; 48; 56; 61; 62; 63; 65; 84; 90), due declarations, duties and tariffs (import and export). Viewed to the COVID-19 pandemic. Imports also exempted from at: https://www.gov.uk/guidance/pay-no-import-duty-and- VAT vat-on-medical-supplies-equipment-and-protective-garments- covid- 19?utm_source=miragenews&utm_medium=miragenews&ut m_campaign=news; and https://assets.publishing.service.gov.uk/government/uploads /system/uploads/attachment_data/file/877754/COVID_19_co mmodity_codes_list.csv/preview United States of Temporary exclusion of certain products from the additional Office of the United States Trade Representative, Notice of Effective 1 September America duty of 25% on a list of 19 products from China (imposed product exclusions: China's acts, policies, and practices 2019 to 1 September 2020 on 1 September 2019). Published on 20 March 2020 but related to technology transfer, intellectual property, and effective retroactively from 1 September 2019 innovation. Federal Register/Vol. 85, No. 47 FR No. 13970 (10 March 2020)

United States of Temporary exclusion of certain products from the additional Office of the United States Trade Representative, Notice of Effective 1 September -

America duty of 25% on a list of products from China (imposed on 1 product exclusions: China's acts, policies, and practices 2019 to 1 September 2020 161

September 2019). Published on 20 March 2020 but related to technology transfer, intellectual property, and

effective retroactively from 1 September 2019 innovation. Federal Register/Vol. 85, No. 50 FR No. 15247 -

(15 March 2020) United States of Presidential Memoranda allocating to domestic use certain WTO document G/MA/QR/N/USA/4/Add.1, 14 May 2020 Effective 7 April 2020 to America personal protective equipment (e.g. N-95 filtering facepiece 10 August 2020 respirators; other filtering facepiece respirators; elastomeric, air-purifying respirators and appropriate particulate filters/cartridges; PPE surgical masks; and PPE gloves or surgical gloves) (HS 3926.20.10; 4015.11.01; 4015.19.00; 6116.10.00; 6216.00.09; 6307.90.99; 9020.00.80), due to the COVID-19 pandemic United States of Initiation of an investigation by the United States United States International Trade Commission - Investigation Report to be delivered as America International Trade Commission aiming at identifying No. 332-576 - COVID-19, Related Goods: U.S. Imports and soon as possible, but not imported goods related to the response to the COVID-19 Tariffs (13 April 2020). Viewed at: lather than 30 April 2020. pandemic, their source countries, tariff classifications, and https://usitc.gov/press_room/news_release/2020/er0504ll15 Report released on 4 May applicable rates of duty. The Commission will seek to 40.htm 2020 provide: (i) the 10-digit HS code for the article; (ii) its legal description; (iii) general duty rate; (iv) any special or additional rates of duty imposed; (v) the dates on which the rates were imposed; (vi) the authorities under which they were imposed; (vii) whether any such duties have been suspended and, if so, the date of suspension as well as how long the suspension is scheduled to last; (viii) the

Member/ Measure Source/Date Status Observer total rate of duty imposed on such article, including any special or additional rate of duty; and (ix) the major countries of origin for each such article, and the import value of each such article from each country for the years 2017-19 United States of Temporary rule by the Federal Emergency Management Department of Homeland Security - Federal Emergency Effective 7 April 2020 to America Agency (FEMA) allocating certain scarce or threatened Management Agency (44 CFR Part 328 - RIN 1660-AB01): 10 August 2020 materials for domestic use, so that these materials may not Prioritization and Allocation of Certain Scarce or Threatened be exported from the United States without explicit Health and Medical Resources to Domestic Use, Federal approval by the FEMA, due to the COVID-19 pandemic. The Register/Vol. 85, No. 70 FR No. 20195 (10 April 2020). rule covers five types of personal protective equipment Viewed at: https://www.govinfo.gov/content/pkg/FR-2020- (PPE): N-95 filtering facepiece respirators; other filtering 04-10/pdf/2020-07659.pdf facepiece respirators; elastomeric, air-purifying respirators and appropriate particulate filters/cartridges; PPE surgical masks; and PPE gloves or surgical gloves United States of Temporary postponement of the time to deposit certain Department of Homeland Security U.S. Customs and Border America estimated duties, taxes, and fees during the national Protection Department of The Treasury (19 CFR Part 24 emergency concerning the COVID-19 outbreak. 90 days USCBP-2020-0017 CBP Dec. 20-05 RIN 1515-AE54) (19 April

deferment period on certain payments for importers 2020). Viewed at: -

(applicably to payments for goods imported in March and https://www.cbp.gov/sites/default/files/assets/documents/20 162

April 2020). Imports subject to AD/CVD duties, and Section 20-Apr/Temporary-Postponement-of-Payment-Period%20for-

201, 232 and 301 trade remedies are not included in this DTF-20-4-2020-1.pdf -

relief effort

Note: The United Kingdom withdrew from the European Union as of 1 February 2020. During the transition period, which ends on 31 December 2020, European Union law, with a few limited exceptions, continues to be applicable to and in the United Kingdom. During the transition period, the information provided by the European Union which is relevant to this document continues to cover the United Kingdom.

Recorded, but not confirmed information3

Member/ Measure Source/Date Status Observer Russian Temporary export ban on wheat and meslin, rye, barley and maize (HS 1001; 1002; La Croix (France) and Bloomberg Effective May to July 2020 Federation 1003; 1005), due to the COVID-19 pandemic (28 April 2020) South Africa Elimination of the temporary export ban on wine and fresh products, imposed due to the Business Day (South Africa) (9 COVID-19 pandemic April 2020)

3 This Section includes information which has been obtained from public sources but has not yet been confirmed by the delegation concerned.

ANNEX 6 – COVID-19 TRADE AND TRADE-RELATED MEASURES (SERVICES)1

Verified by Member Sector Measure Source Date Member Australia All sectors On 29 March 2020, the Australian Government announced Viewed at: Effective from YES temporary changes to the foreign investment review framework https://firb.gov.au/qa-temporary- 10:30pm that are designed to safeguard Australia’s national interest during changes-foreign-investment- (AEDT) 29 the COVID-19 pandemic crisis. During this period the monetary framework March 2020 threshold amounts under the Foreign Acquisitions and Takeovers Act 1975 will be AUD 0 for proposed foreign investments made on or after 10:30pm (AEDT) 29 March 2020. Australia Financial services On 19 March, the Australian Prudential Regulatory Authority Viewed at: 19 March 2020 YES (APRA) announced support for use of capital buffers to promote https://www.apra.gov.au/news-and- ongoing lending to the economy. publications/apra-adjusts-bank- capital-expectations Australia Selected sectors The government has introduced new measures in response to Viewed at: Initiated 1 April YES COVID-19 to allow some temporary work visa holders employed https://covid19.govcms.gov.au/stayin 2020 in critical sectors including agriculture, food processing, health, g-australia#15 aged and disability care and childcare to remain in Australia and continue working until it is safe and practicable for them to return to their countries. Visas may be granted for stays of up to 12 months. -

Brazil Financial services On 16 March, the Central Bank of Brazil reduced the Conservation Viewed at: 16 March 2020 YES 163

Capital Buffer from 2.5% to 1.25% for one year. https://www.bcb.gov.br/en/pressdeta

il/2322/nota -

Brazil Health services To deal with the health emergency, the use of telemedicine for Ordinance 46/20 20 March 2020 YES medical services, including medical consultation and digital medicine prescription, is permitted on an exceptional and Viewed at: temporary basis through ordinance 467/20. http://www.in.gov.br/en/web/dou/- /portaria-n-467-de-20-de-marco-de- 2020-249312996

1 This table has been compiled by the WTO Secretariat and is an informal situation report and an attempt to provide transparency with respect to measures affecting trade in services taken in the context of the COVID-19 crisis. It does not pass judgment on or questions the right of WTO members to take such actions. The Secretariat has not sought to determine and indicate whether the measures listed in the table have trade-restrictive or trade-facilitating effects. The information in this table is not exhaustive and does not include information on general support measures relating to services. Further, the objective of this table is not to list all COVID-19-related measures taken by governments around the world to limit movement, nor all the measures taken to ease the impact of border restrictions or other limits on movement. The measures listed in this table provide a situation report up to 15 May 2020. A consistent feature of the trade and trade-related measures taken in response to the COVID-19 crisis has been the frequent changes, adjustments and occasional roll-back of such measures to reflect the evolving situation. The updated lists of measures implemented in the context of the current pandemic are available on the COVID-19 page of the WTO website: https://www.wto.org/english/tratop_e/covid19_e/covid19_e.htm#measures.

Verified by Member Sector Measure Source Date Member Canada All sectors On 18 April 2020, the government issued a Policy Statement Viewed at: 18 April 2020 YES indicating that, in the context of the pandemic, it would subject https://www.ic.gc.ca/eic/site/ica- certain foreign investments into Canada to enhanced scrutiny lic.nsf/eng/lk81224.html under the Investment Canada Act.

The government will scrutinize with particular attention foreign direct investments of any value, controlling or non-controlling, in Canadian businesses that are related to public health or involved in the supply of critical goods and services to Canadians or to the government. The government will also subject all foreign investments by state-owned investors, regardless of their value, or private investors assessed as being closely tied to or subject to direction from foreign governments, to enhanced scrutiny under the Act. This may involve the Minister requesting additional information or extensions of timelines for review as authorized by the ICA, in order to ensure that the government can fully assess these investments.

This enhanced scrutiny of certain foreign investments is to apply until the economy recovers from the effects of the COVID-19

pandemic. -

Canada Financial services On 13 March, the Office of the Superintendent of Financial Viewed at: 13 March 2020 YES 164

Institutions (OSFI) lowered the stability buffer requirement from https://www.osfi-bsif.gc.ca/Eng/osfi-

2.25% to 1% of risk-weighted assets. bsif/med/Pages/nr_20200313.aspx - Canada Financial services On 27 March, OSFI announced a suite of adjustments to existing Viewed at: 27 March 2020 YES capital and liquidity requirements (e.g., liquidity coverage ratio https://www.osfi-bsif.gc.ca/Eng/fi- and net stable funding ratio) to afford institutions further if/in-ai/Pages/DTI20200327_let.aspx flexibility in addressing conditions precipitated by the COVID-19 pandemic while promoting financial resilience and stability. China Air transport The Civil Aviation Administration of China (CAAC) has recognized Viewed at: 21 March 2020 YES services the need for flexibility in the delivery of classroom training and for https://www.iata.org/en/pressroom/p the completion of recurrent training requirements. It has also r/2020-03-21-01/ granted the ability to extend the validity periods to some elements of training applicable to pilots, engineers, cabin crew and dispatchers. China All sectors On 10 February 2020, the MOFCOM General Office issued the Circular on Strengthening the 10 February YES Circular on Strengthening the Services for Foreign-Invested Services for Foreign-Invested 2020 Enterprises and Investment Attraction Work While Actively Enterprises and Investment Attraction Fighting Against COVID-19 Pandemic, requiring local departments Work While Actively Fighting Against of commerce to provide necessary services for foreign-invested COVID-19 Pandemic enterprises and attract investment on the condition of effectively preventing and controlling the COVID-19 pandemic. Viewed at: http://english.mofcom.gov.cn/ Specifically, the Circular requires local departments of commerce to: 1) actively help foreign-invested enterprises to resume normal production and operation; 2) strengthen services for large foreign-invested projects; 3) innovate and improve the work of

Verified by Member Sector Measure Source Date Member investment promotion; 4) offer targeted assistance based on local conditions; and 5) continue to improve the business environment. China Financial services On 3 April 2020, the People's Bank of China decided to cut the Viewed at: 03 April 2020 YES Required Reserve Ratio by 1 percentage point, with a cut of 0.5 http://www.pbc.gov.cn/en/3688110/ percentage points on April 15 and May 15 each time, for rural 3688172/4002931/index.html credit cooperatives, rural commercial banks, rural cooperative banks, village banks, as well as city commercial banks operating solely within provincial-level administrative regions. European Union All sectors The European Commission issued new guidelines for screening Viewed at: 25 March 2020 YES foreign direct investment in companies and critical assets located https://trade.ec.europa.eu/doclib/doc in the European Union, including those operating in the fields of s/2020/march/tradoc_158676.pdf health, medical research, biotechnology and infrastructures deemed essential for security and public order. This aims to respond to the increased potential risk to strategic industries, as a result of the economic shock posed by COVID-19.

The guidelines offer guidance to be applied within the context of the recently adopted framework for EU screening and review of FDI. Among other things, the new guidelines: - Call on Member States to make full use of existing FDI screening

mechanisms and take fully into account the risks to critical health -

infrastructures, supply of critical inputs, and other critical sectors; 165 - Call on those Member States without screening mechanisms to

set up a full-fledged screening mechanism and in the meantime - to use other available options to address cases where the acquisition or control of a particular business, infrastructure or technology would create a risk to security or public order in the EU, including a risk to critical health infrastructures and supply of critical inputs. European Union Air transport On 30 March, the European Union suspended its rule that require Regulation of the European Effective 1 YES services air carriers to operate slots for at least 80 percent of the time to Parliament and the Council Amending March 2020, keep the entitlement in the next equivalent season for the whole Council Regulation (EEC) NO 95/93 and summer season, until 24 October 2020. on Common Rules for the Allocation retroactively of Slots at Community Airports. from 23 January for Viewed at: flights between http://data.consilium.europa.eu/doc/ the EU and document/PE-4-2020-REV-1/en/pdf China or Hong Kong, China. European Union Air transport The European Commission has published guidelines setting out Viewed at: 26 March 2020 YES services operational measures to facilitate the operation of air cargo https://ec.europa.eu/transport/sites/t during the COVID-19 outbreak. ransport/files/legislation/c20202010_ en.pdf European Union Air transport The European Aviation Safety Agency allowed the extension of the Viewed at: 21 March 2020 YES services validity periods for licences, ratings, endorsements, certificates https://www.iata.org/en/pressroom/p and attestations of aircrew, instructors, examiners, aircraft r/2020-03-21-01/ maintenance licence holders and air traffic controllers as well as

Verified by Member Sector Measure Source Date Member extension of airworthiness review certificates. European Union Financial services On 12 March, the European Central Bank said banks directly Viewed at: 12 March 2020 YES supervised by the ECB can fully use capital buffers and that banks https://www.bankingsupervision.euro will benefit from relief in the composition of capital for Pillar 2 pa.eu/press/pr/date/2020/html/ssm.p Requirements. Banks are also expected not to increase capital r200312~43351ac3ac.en.html distributions in response to these measures. Banks will also be allowed to operate temporarily below the liquidity coverage ratio. European Union Road transport On 16 March 2020, the European Commission issued guidelines Viewed at: 16 March 2020 YES services for border measures to protect health and keep goods and https://ec.europa.eu/home- essential services available. The guidelines set out principles for affairs/sites/homeaffairs/files/what- an integrated approach to an effective border management to we-do/policies/european-agenda- protect health while preserving the integrity of the internal migration/20200316_covid-19- market. guidelines-for-border- management.pdf European Union Road transport On 30 March 2020, the European Commission issued some Viewed at: 30 March 2020 YES services and specific guidelines in order to ensure the continuation of national https://ec.europa.eu/environment/wa environmental and cross-border waste shipments in the EU. The guidelines ste/shipments/pdf/waste_shipment_a services indicate that the Green Lanes apply mutatis mutandis to the nd_COVID19.pdf?utm_source=POLITI shipments of waste, and invite Member States to implement this CO.EU&utm_campaign=7ef90fbd23- principle. EMAIL_CAMPAIGN_2020_03_31_02_

49&utm_medium=email&utm_term= -

0_10959edeb5-7ef90fbd23- 166

190580935

France All sectors The Minister for the Economy and Finance announced on 29 April Text no. 22 of the French Official Effective 30 -

2020 an update to the screening procedure for foreign direct Journal no. 0105 dated 30 April 2020. April 2020 investment (FDI) in the context of the current health and economic crisis. Viewed at: https://www.tresor.economie.gouv.fr/ The new measure includes biotechnologies in the list of critical Articles/2020/04/30/covid-19-update- technologies that are likely to be subject to FDI screening. It also of-the-foreign-direct-investment- lowers, from 25% to 10%, the threshold of voting rights in the screening-procedure-in-france acquired company that triggers the screening procedure. This change in the threshold will apply for a limited period of time, only for listed companies, and for investors from third countries (European Union and European Economic Area investors are exempted). France Health services The government has relaxed the rules on the use of telemedicine Decree No. 2020-227 of 9 March 9, 19 and 23 YES services. Until 31 May 2020, all persons affected by COVID-19 2020; March 2020 (and other patients under certain circumstances) can benefit from Decree No. 2020-277 of 19 March telemedicine services even if there is no prior relation between 2020; the healthcare provider and the patient. This can be done using Order (Arrêté) of 23 March 2020 video transmission tools (equipped location for the health service provider, dedicated platform or Internet website or app). If the Viewed at: patient is not duly equipped, the service can be provided by https://www.legifrance.gouv.fr/affich phone. Texte.do?cidTexte=JORFTEXT000041 704122&categorieLien=id

Verified by Member Sector Measure Source Date Member https://www.legifrance.gouv.fr/affich Texte.do?cidTexte=JORFTEXT000041 737421&dateTexte=20200410

https://www.legifrance.gouv.fr/affich Texte.do?cidTexte=JORFTEXT000041 746744&categorieLien=id France Financial services On 18 March, the Haut Conseil de Stabilité Financière (the French Viewed at: 18 March 2020 YES macroprudential authority) reduced the countercyclical capital https://www.economie.gouv.fr/files/fil buffer from 0.25% of risk-weighted assets (RWA) to 0% RWA. es/directions_services/hcsf/HCSF_202 00318_Communique_de_presse_de_s eance.pdf France Financial services On 17 March, the Autorité des marchés financiers (the French Viewed at: 17 March 2020 YES financial markets authority) announced the prohibition of short https://www.amf- selling for one month. france.org/en/news- publications/news-releases/amf- news-releases/amf-announces-short- selling-ban-one-month Germany Financial services On 18 March, Federal Financial Supervisory Authority (BaFin) Viewed at: 01 April 2020 YES lowered the countercyclical capital buffer from 0.25% to 0% as of https://www.bundesbank.de/en/tasks

1 April. /topics/statement-on-the- -

countercyclical-capital-buffer-by-the- 167 german-financial-stability-committee-

828822 -

India All sectors The government amended its Foreign Direct Investment (FDI) Viewed at: 18 April 2020 policy in order to curb takeovers or acquisitions of Indian https://pib.gov.in/PressReleasePage.a companies as a result of the COVID-19 pandemic. spx?PRID=1615711

The amendment provides that an entity of a country that shares a land border with India - or where the beneficial owner of an investment into India is situated in or is a citizen of any such country - can invest only with prior government permission. India Telecommunication To ensure uninterrupted service for prepaid phone users amid the Viewed at: 30 March 2020 services lockdown, the Telecom Regulatory Authority of India (TRAI) has https://www.commsupdate.com/articl asked telecom operators to extend the validity of pre-paid es/2020/03/30/india-industry-adapts- services. Further, India's Congress asked telecom operators to to-pandemic-challenges/ waive call charges for migrant workers for a month as hundreds of thousands attempt to leave cities and return home. India Telecommunication The Department of Telecommunications relaxed the guidelines for Viewed at: 13 March 2020 YES services Other Service Providers [OSP] (companies providing 'Applications https://dot.gov.in/sites/default/files/R Services' like tele-banking, tele-medicine, tele-education, tele- elaxation%20inT%26C%20of%20OSP trading, e-commerce, call centre, network operation centre and %2013.3.20.PDF?download=1 other IT Enabled Services).

Verified by Member Sector Measure Source Date Member India Financial services The Reserve Bank of India has allowed banks to temporarily Viewed at: March-April YES maintain lower levels of liquidity and has introduced additional https://www.rbi.org.in/home.aspx 2020 flexibility in the implementation of banks' capital requirements, in particular the countercyclical capital buffer and the capital conservation buffer, among various measures to assist banks in the context of the shutdown in India following the Covid-19 outbreak. India Financial services The Reserve Bank of India has authorized banks to deal in Viewed at: March 2020; YES offshore non-deliverable rupee derivative markets (Offshore NDF https://www.rbi.org.in/home.aspx Effective 1 June Rupee Market). Banks in India that operate International Financial 2020 Services Centre (IFSC) Banking Units (IBUs) will be able to participate in the NDF market with effect from 1 June 2020. Banks may participate through their branches in India, their foreign branches or through their IBUs. Previously, Indian banks were not permitted to participate in Indian rupee derivative market or the off-shore Non-Deliverable Forward market. Indonesia Internet and other As part of the COVID-19 emergency bill signed by the President Regulation in lieu of law (Perppu) No. 31 March 2020 YES network-enabled on 31 March 2020, a new regulation requires foreign suppliers of 1 Year 2020 on State Financial and services digital services to register and charge the value added tax. The Financial System Stability Policy to measure also provides for the imposition of a tax on e-commerce Manage Corona Virus Disease 2019

activities carried out by foreign suppliers with a significant (COVID-19) Pandemic and/or to -

economic presence in Indonesia. Anticipate Threats that Will Endanger 168 National Economy and/or Financial

Significant economic presence will be determined further by System Stability. - authorities, taking into account such factors as gross revenue, sales and active users in Indonesia. Those with a significant Viewed at: economic presence will be declared permanent establishments https://www.thejakartapost.com/new and, thus, subject to domestic tax regulations. The regulation s/2020/04/01/indonesia-taxes-tech- provides that an electronic transaction tax on the company's sales companies-through-new- in Indonesia would be charged if tax treaties prevent declaring a regulation.html company as a permanent establishment. https://www.taxathand.com/article/1 The Regulation in lieu of law (Perppu) aims to relax some 3314/Indonesia/2020/Measures- regulations needed to manage COVID-19 and maintain financial introduced-in-response-to-COVID-19- system stability in Indonesia. The regulation covers measures on include-immediate-CIT-rate-reduction budgeting and financing, taxation including reduction in general corporate income tax rates, extension of the period of application/settlement of tax administration, and customs facilities. Further provisions are regulated in the Ministry of Finance regulation No. 46/2020, 38/2020, 36/2020, 35/2020, and 43/2020. Indonesia Financial services On 23 March, the Financial Services Authority (OJK) prohibited Viewed at: 23 March 2020 short selling transactions until a date to be determined. https://www.ojk.go.id/en/berita-dan- kegiatan/siaran-pers/Pages/Joint- Press-Release-OJK-and-SRO- Maintain-Continuous-Stock- Exchange%e2%80%99s-Orderly,-

Verified by Member Sector Measure Source Date Member Fair.aspx Italy Selected sectors On 9 April 2020, the government widened, during the emergency Law Decree No. 23 of 2020 09 April 2020 YES period, its foreign investment screening powers to new sectors, such as food security, health, banks and insurance companies, Viewed at: financial infrastructure, as well as to acquisitions within the https://www.gazzettaufficiale.it/gazze European Union not only for control but also for the acquisition of tta/serie_generale/caricaDettaglio?dat shares of 10% or more. The new measure also makes it possible aPubblicazioneGazzetta=2020-04- for the government to start exerting special powers ex officio for 08&numeroGazzetta=94&elenco30gio non-notified operations. The new measure is valid until 31 rni=tru December 2020. Italy Financial services On 20 March, Banca d’Italia allowed all banks and non-bank Viewed at: 20 March 2020 YES intermediaries to operate temporarily below the level of the Pillar https://www.bancaditalia.it/media/co 2 Guidance and the capital conservation buffer, as well as below municati/documenti/2020- the liquidity coverage ratio. 01/Deadlines-extension-COVID- 19.pdf?language_id=1 Italy Financial services On 17 March, Consob, the public authority responsible for Viewed at: 17 March 2020 YES regulating the Italian securities markets, prohibited the taking or http://www.consob.it/documents/461 increasing of net short positions (short-selling and other bearish 80/46181/press_release_20200317.p transactions) on all stocks traded on the Italian regulated market df/0f50bec8-8dda-439a-a2fd- for a duration of 3 months. f63bbd39f2e3

Japan Financial services In response to the recent spread of COVID-19, relevant Viewed at: Updated 19 YES -

authorities have taken measures, including: https://www.fsa.go.jp/en/ordinary/co May 2020 169 ronavirus202001/press.html

(i) Minister for Financial Services issued a statement on -

maintaining the function of the financial system and financial markets under the Declaration of a State of Emergency Responding to the Spread of COVID-19 on 16 April; (ii) The Financial Services Agency (FSA) made a leaflet become available for those facing difficulties with cash flow as impact of the ongoing COVID-19 epidemic spreads on 8 April; (iii) The FSA established the Consultation Hotline Related to COVID-19 for financial services users on February 28; (iv) The FSA made requests to financial institutions to take prompt and flexible measures related to cash flow support for companies and individuals in consideration of COVID-19 spreads by publishing notices on 7 February, 6 March, 13 March, 24 March, 7 April, 10 April, 16 April, and 21 April; (v) The FSA published a reference casebook on a collection of financial institutions' favorable response-practices to deal with COVID-19 affected parties on 27 March; (vi) The FSA put forth the conditions for the extension of deadline for submitting annual securities and other reports in connection with the COVID-19 infection due to unavoidable reasons on 10 February; and (vii) The FSA established the Networking Group on the corporate disclosure, financial reporting and audit of listed companies in consideration of the impact of the COVID-19 Infection on 3 April.

Verified by Member Sector Measure Source Date Member Korea (Rep. of) Financial services On 16 March, FSC announced that the government will tighten Viewed at: 16 March 2020 YES regulations on stock short selling for six months beginning on http://www.fsc.go.kr/eng/new_press/ March 16. releases.jsp Korea (Rep. of) Financial services On 19 March, Korean regulator raised the cap of foreign exchange Viewed at: 19 March 2020 YES (FX) derivatives positions for local banks from 40% to 50%, and http://www.moef.go.kr/nw/nes/detail from 200% to 250% for foreign banks. NesDtaView.do?menuNo=4010100&s earchNttId1=MOSF_00000000003270 5&searchBbsId1=MOSFBBS_0000000 00028 Mexico Air transport In Mexico, the Agencia Federal de Aviación Civil (AFAC) is Viewed at: 21 March 2020 services extending the validity of permits, licenses and/or certificates for https://www.iata.org/en/pressroom/p technical personnel for three months. r/2020-03-21-01/ Russian Air transport The Russian Federation has exempted flight crews from the 14- Viewed at: 26 March 2020 YES Federation services day quarantine. https://tiaca.org/news/covid-19- tiacas-weekly-update-governments- are-urged-to-facilitate-the-flow-of- air-cargo-to-fight-covid-19-and-its- effects/ South Africa Telecommunication The Independent Communications Authority of South Africa Viewed at: 31 March 2020 services (ICASA) is extending the validity of existing frequency spectrum https://www.icasa.org.za/news/2020/

licences by three months, due to South Africa's Covid-19 due-date-for-the-renewal-of-radio- -

lockdown. The due date for the renewal of radio frequency frequency-spectrum-licences- 170 spectrum licences and payment of the renewal fees is normally 31 extended

March of each year. -

South Africa Health services The Health Professions Council of South Africa (HPCSA) issued a Viewed at: 25 March 2020 guidance note on the application of telemedicine during the https://ahpcsa.co.za/wp- COVID-19 pandemic, and which facilitates the use of video or content/uploads/2020/03/GUIDELINE phone calls by doctors and therapists to treat patients. Previously, S_TELEHEALTH- such services were essentially to cases where there was an TELEMEDICINE_1_24Mar2020.pdf already established practitioner-patient relationship. Turkey Financial services On 26 March, Turkish authorities introduced flexibility in the Viewed at: 26 March 2020 YES compliance of liquidity ratios until the end of 2020. https://www.reuters.com/article/healt h-coronavirus-turkey-banks/turkish- banking-watchdog-eases-banks- liquidity-ratio-due-to-coronavirus- idUSL8N2BJ8BU

https://www.bddk.org.tr/ContentBddk /dokuman/mevzuat_0954.pdf United Telecommunication The Government has agreed measures with telecoms companies Viewed at: 29 March 2020 Kingdom services to support vulnerable consumers through COVID-19. https://www.gov.uk/government/new s/government-agrees-measures-with- The UK’s major internet service and mobile providers, namely telecoms-companies-to-support- BT/EE, Openreach, Virgin Media, Sky, TalkTalk, O2, Vodafone, vulnerable-consumers-through-covid- Three, Hyperoptic, Gigaclear, and KCOM have all agreed the 19 following commitments, effective immediately:

Verified by Member Sector Measure Source Date Member - All providers have committed to working with customers who find it difficult to pay their bill as a result of Covid-19 to ensure that they are treated fairly and appropriately supported; - All providers will remove all data allowance caps on all current fixed broadband services; - All providers have agreed to offer some new, generous mobile and landline packages to ensure people are connected and the most vulnerable continue to be supported. For example, some of these packages include data boosts at low prices and free calls from their landline or mobile; - All providers will ensure that vulnerable customers or those self- isolating receive alternative methods of communication wherever possible if priority repairs to fixed broadband and landlines cannot be carried out. United Health services Since 31 March 2020, visas for doctors, nurses and paramedical Viewed at: 31 March 2020 Kingdom personnel with visas due to expire before 1 October 2020 are https://www.gov.uk/government/new automatically extended for one year, free of charge. This also s/nhs-frontline-workers-visas- concerns the personnel's family members. extended-so-they-can-focus-on- fighting-coronavirus United Air transport The UK Civil Aviation Authority have issued a number of Viewed at: 23 March 2020 YES

Kingdom services regulatory exemptions to support the sector including extending https://publicapps.caa.co.uk/modalap -

the validity periods of licences, certificates and ratings. plication.aspx?catid=1&pagetype=65 171 &appid=11&mode=list&type=sercat&i

d=17 -

United Financial services On 11 March, the Bank of England lowered the countercyclical Viewed at: 11 March 2020 YES Kingdom capital buffer rate from 1% to 0%, and introduced flexibility in https://www.bankofengland.co.uk/ne the compliance of liquidity requirements, so as to support banks ws/2020/march/boe-measures-to- in extending credit. respond-to-the-economic-shock-from- covid-19 United States Telecommunication The Federal Communication Commission launched the "Keep Viewed at: 13 March 2020 services Americans Connected Initiative" to ensure that Americans do not https://www.fcc.gov/keep-americans- lose their broadband or telephone connectivity in the context of connected COVID-19. As of mid-March, more than 550 companies and associations have pledged to keep Americans connected. United States Telecommunication The FCC has temporarily altered regulations for its Rural Health Viewed at: 16 March 2020 services Care and E-rate programmes to make it easier for broadband https://docs.fcc.gov/public/attachmen providers to offer participants improved connections or additional ts/DOC-363137A1.pdf equipment for telemedicine and remote learning during the pandemic. The changes will remain in effect through 30 September. United States Telecommunication The Federal Communications Commission (FCC) voted to adopt a Viewed at: 02 April 200 and health services USD 200 million telehealth program to support healthcare https://docs.fcc.gov/public/attachmen providers responding to the coronavirus pandemic. Funds were ts/DOC-363498A1.pdf appropriated by Congress as part of the CARES Act. The program aims to help healthcare providers purchase telecommunications, broadband connectivity, and devices necessary for providing telehealth services

Verified by Member Sector Measure Source Date Member

The FCC also launched a Connected Care Pilot Program. This three-year Pilot Program will provide up to USD 100 million of support from the Universal Service Fund (USF) to help defray health care providers' costs of providing connected care services and to help assess how the USF can be used in the long-term to support telehealth. United States Telecommunication The Federal Communications Commission granted special Viewed at: 15 and 18 services temporary authority (STA) to T-Mobile U.S.A. to use additional https://docs.fcc.gov/public/attachmen March 2020 spectrum in the 600 MHz Band to help it meet increased customer ts/DOC-363051A1.pdf demand for broadband during the coronavirus pandemic. The company requested this authority to make it easier for Americans https://www.commsupdate.com/articl to participate in telehealth, distance learning, and telework, and es/2020/03/18/fcc-grants-us-cellular- remain connected while practicing recommended 'social access-to-extra-aws-3-spectrum/ distancing'.

On 18 March, the FCC announced that US Cellular was granted a similar STA to use additional spectrum to help meet increased customer demand for mobile broadband during the coronavirus pandemic.

United States Telecommunication Verizon has received a temporary (60-day) spectrum boost from Viewed at: 20 March 2020 -

services the FCC to help meet increased customer demand for mobile https://www.fcc.gov/document/fcc- 172 broadband access during the pandemic. FCC had already issued grants-verizon-temporary-spectrum-

temporary, 60-day spectrum to two companies, T-Mobile and US access-during-covid-19-pandemic - Cellular. https://www.fcc.gov/document/fcc- grants-t-mobile-temporary-spectrum- access-during-coronavirus

https://www.commsupdate.com/articl es/2020/03/20/verizon-is-the-latest- us-cellco-to-receive-temporary- spectrum-boost/ United States Air transport On 11 March, the US Federal Aviation Administration (FAA) Viewed at: Effective 11 services waived its slot-use requirements through 31 May for US and https://www.faa.gov/news/press_rele March 2020 foreign airlines that operated affected flights. The FAA expects ases/news_story.cfm?newsId=24736 that US carriers will be accommodated with reciprocal relief by foreign authorities at airports in their countries and may determine not to grant a waiver to a foreign carrier whose home jurisdiction does not reciprocate. ______